ReadyCalculator

💳 Debt Payoff Calculator

Calculate debt payoff timeline

How to Use This Calculator

1

Enter Total Debt

Input your total debt amount - the amount you owe that you want to pay off.

2

Enter Interest Rate

Enter the annual interest rate as a percentage. This is the cost of borrowing money.

3

Enter Monthly Payment

Enter the amount you plan to pay each month. This must be greater than the monthly interest to pay off the debt.

4

Review Payoff Timeline

See how long it will take to pay off your debt, total interest paid, and total amount paid. Use this to plan your debt payoff strategy.

Formula

Months to Payoff = -log(1 - (Debt × Monthly Rate) / Payment) / log(1 + Monthly Rate)

Total Interest = (Monthly Payment × Months) - Debt

Example Calculation:

If debt $10,000, rate 18% (1.5% monthly), payment $300/month:

• Monthly interest = $10,000 × 1.5% = $150

• Principal paid = $300 - $150 = $150

• Months to payoff: ~42 months

• Total interest: ~$2,600

About Debt Payoff Calculator

A debt payoff calculator helps you determine how long it will take to pay off your debt and how much interest you'll pay based on your monthly payment amount. This calculator uses the standard loan payoff formula to calculate the exact number of months needed to pay off debt, along with total interest and total amount paid. Understanding your debt payoff timeline helps you plan your finances, set realistic goals, and make informed decisions about payment amounts.

When to Use This Calculator

  • Debt Payoff Planning: Plan your debt payoff strategy
  • Payment Planning: Determine how much to pay monthly
  • Interest Analysis: Understand total interest costs
  • Goal Setting: Set realistic debt payoff goals

Understanding Debt Payoff

  • Compound Interest: Interest accumulates monthly on outstanding balance
  • Payment Impact: Higher payments significantly reduce payoff time
  • Minimum Payments: Making only minimum payments extends payoff time
  • Total Cost: Includes original debt plus all interest

Why Use Our Calculator?

  • Payoff Timeline: See exactly how long it takes to pay off
  • Interest Costs: Understand total interest paid
  • Payment Planning: Plan your monthly payments
  • Accurate Formula: Uses standard mathematical formulas
  • 100% Free: No registration or payment required

Frequently Asked Questions

How long will it take to pay off my debt?

Payoff time depends on your debt amount, interest rate, and monthly payment. Higher payments significantly reduce payoff time. Use this calculator to see your specific timeline based on your payment amount.

How much interest will I pay?

Total interest depends on debt amount, interest rate, and how long you take to pay off. The calculator shows your exact total interest based on your monthly payment. Higher payments reduce total interest.

Should I pay more than the minimum?

Yes! Paying more than the minimum significantly reduces payoff time and total interest. Even small increases can save hundreds or thousands in interest and reduce payoff time by months or years.

What if my payment is too low?

If your monthly payment is less than or equal to the monthly interest, you won't be able to pay off the debt - the balance will grow. You must pay more than the monthly interest to make progress on paying off debt.