Debt Payoff Calculator
Calculate how long it will take to pay off your debt and how much interest you'll pay based on your balance, interest rate, and monthly payment.
How to Use This Calculator
- Enter your current debt balance
- Input the annual interest rate on your debt
- Specify your monthly payment amount
- Select your payment method (fixed or minimum)
- Adjust the extra payment slider if you plan to pay more than the minimum
- Click Calculate to see your debt payoff timeline and total interest paid
Formula Used
N = -log(1 - (P × r) / M) / log(1 + r)
Where:
- N = Number of payments to pay off the debt
- P = Principal (initial loan amount)
- r = Monthly interest rate (annual rate divided by 12)
- M = Monthly payment amount
Example Calculation
Real-World Scenario:
Sarah has a credit card balance of $5,000 with an 18% annual interest rate. She wants to know how long it will take to pay off her debt if she makes fixed monthly payments of $200.
Given:
- Principal (P) = $5,000
- Annual Interest Rate = 18% (Monthly rate = 0.18/12 = 0.015)
- Monthly Payment (M) = $200
Calculation:
N = -log(1 - (5000 × 0.015) / 200) / log(1 + 0.015)
N = -log(1 - 75/200) / log(1.015)
N = -log(0.625) / log(1.015)
N = 0.2041 / 0.0065 = 31.4 payments
Result: It will take approximately 32 months (2 years and 8 months) to pay off the credit card debt, with a total of $6,400 paid ($5,000 principal + $1,400 interest).
Why This Calculation Matters
Practical Applications
- Planning your debt repayment strategy
- Comparing different payment scenarios
- Understanding the impact of interest rates
- Making informed decisions about debt consolidation
Key Benefits
- Saves money by reducing total interest paid
- Helps set realistic debt repayment goals
- Provides motivation by showing a clear end date
- Demonstrates the power of making extra payments
Common Mistakes & Tips
Frequently Asked Questions
References & Disclaimer
Financial Disclaimer
This calculator provides estimates for educational purposes only. The results are based on the information you provide and may not reflect your actual debt repayment timeline. Interest rates may change, and additional fees may apply. This calculator does not constitute financial advice. Please consult with a qualified financial professional before making any financial decisions.
References
- Consumer Financial Protection Bureau - Tools and resources for managing debt and understanding financial products
- FDIC Consumer News - Financial education resources on debt management and personal finance
- USA.gov - Debt Management - Government resources for managing and reducing debt
Accuracy Notice
This calculator assumes fixed interest rates and consistent payment amounts. It does not account for variable interest rates, payment holidays, or other factors that may affect your actual debt repayment. The amortization schedule is an estimate and may differ from your actual payment schedule. Always refer to your loan agreement for accurate terms and conditions.
About the Author
Kumaravel Madhavan
Web developer and data researcher creating accurate, easy-to-use calculators across health, finance, education, and construction and more. Works with subject-matter experts to ensure formulas meet trusted standards like WHO, NIH, and ISO.