Debt Payoff Calculator

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Debt Payoff Calculator
Calculate Time to Pay Off (Months)Calculate Monthly Payment Needed
Result:
function toggleInputs(){var type=document.getElementById('calc_type').value;if(type==='months'){document.getElementById('row_payment').style.display='table-row';document.getElementById('row_months').style.display='none';}else{document.getElementById('row_payment').style.display='none';document.getElementById('row_months').style.display='table-row';}}function calculateDebt(){var type=document.getElementById('calc_type').value;var balance=parseFloat(document.getElementById('balance').value);var annualRate=parseFloat(document.getElementById('interest').value);var i=annualRate/100/12;var answerDiv=document.getElementById('answer');var resultVal=document.getElementById('resultValue');var stepsDiv=document.getElementById('stepsOutput');var showSteps=document.getElementById('steps').checked;stepsDiv.innerHTML=";if(isNaN(balance)||isNaN(annualRate)){alert('Please enter valid numbers');return;}if(type==='months'){var payment=parseFloat(document.getElementById('payment_val').value);if(isNaN(payment)){alert('Please enter payment amount');return;}if(payment<=(balance*i)){resultVal.innerHTML="Payment is too low!
Monthly interest is $"+(balance*i).toFixed(2)+". Your payment must exceed this to ever pay off the debt.";answerDiv.style.display='block';return;}var n=Math.ceil(-Math.log(1-(i*balance)/payment)/Math.log(1+i));var totalPaid=payment*n;var totalInterest=totalPaid-balance;resultVal.innerHTML="It will take "+n+" months ("+(n/12).toFixed(1)+" years) to pay off this debt.
Total Interest: $"+totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});if(showSteps){stepsDiv.innerHTML="
Monthly Interest Charge: $"+(balance*i).toFixed(2)+"
Total Amount to be Paid: $"+totalPaid.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});}}else{var months=parseFloat(document.getElementById('months_val').value);if(isNaN(months)||months<=0){alert('Please enter valid number of months');return;}var pmt;if(i===0){pmt=balance/months;}else{pmt=(balance*i*Math.pow(1+i,months))/(Math.pow(1+i,months)-1);}var totalPaid=pmt*months;var totalInterest=totalPaid-balance;resultVal.innerHTML="Required Monthly Payment: $"+pmt.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2})+"
Total Interest Paid: $"+totalInterest.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});if(showSteps){stepsDiv.innerHTML="
To finish in "+months+" months, you must pay $"+pmt.toFixed(2)+" monthly.
Total of all payments: $"+totalPaid.toLocaleString(undefined,{minimumFractionDigits:2,maximumFractionDigits:2});}}answerDiv.style.display='block';}

Calculator Use

The debt payoff calculator is a powerful financial tool designed to help you regain control of your finances. Whether you are dealing with high-interest credit card debt, personal loans, or medical bills, this tool calculates exactly how long it will take to become debt-free based on your current payment habits. Conversely, if you have a specific goal date in mind, it can tell you exactly how much you need to pay each month to reach that goal.

To get the most accurate results, gather your latest billing statements to ensure you have the correct current balance and annual percentage rate (APR).

Current Debt Balance
The total amount you currently owe to the lender, including any accrued interest.
Annual Interest Rate (APR)
The yearly interest rate charged by your lender. Note: The calculator converts this to a monthly rate for calculation.
Planned Monthly Payment
The amount you intend to pay every month until the balance is zero.
Target Months to Payoff
If you want to be debt-free by a certain time (e.g., in 2 years), enter 24 months here.

How It Works

The debt payoff calculator uses standard amortization formulas. Interest is typically compounded monthly, meaning every month your lender calculates the interest based on your remaining balance. If your payment is only slightly higher than the interest charged, most of your money goes to the bank rather than reducing your debt.

N = -log(1 – (i * B) / P) / log(1 + i)

  • N = Number of months to payoff
  • B = Starting balance
  • P = Monthly payment amount
  • i = Monthly interest rate (Annual Rate / 12 / 100)

Calculation Example

Example: Imagine you have a credit card balance of $5,000 with an APR of 18%. You decide to pay $200 per month. How long will it take to reach zero?

Step-by-step solution:

  1. Balance (B) = $5,000
  2. Annual Rate = 18% (Monthly rate i = 0.015)
  3. Monthly Payment (P) = $200
  4. Monthly Interest = $5,000 * 0.015 = $75
  5. Principal Paid = $200 – $75 = $125 (first month)
  6. Using the log formula: N ≈ 32 months
  7. Result: It will take approximately 2 years and 8 months to pay off the debt, with over $1,300 paid in total interest.

Common Questions

Should I use the Debt Snowball or Debt Avalanche?

The debt payoff calculator can help you decide. The Snowball method focuses on paying off the smallest balances first for psychological wins. The Avalanche method focuses on the highest interest rates first to save the most money on interest. For most users, the Avalanche method is mathematically superior, but the Snowball method helps many stay motivated.

Why does my balance barely move even if I pay every month?

This usually happens when your payment is close to the "Minimum Payment." Lenders often set minimum payments just high enough to cover the monthly interest and a tiny sliver of principal. If your balance is $10,000 at 24% interest, your monthly interest alone is $200. If you pay $210, only $10 reduces your debt.

How can I speed up my debt payoff?

The fastest way is to increase your monthly payment. Even an extra $50 a month can shave months or years off a repayment schedule. Additionally, consider balance transfer cards with 0% introductory APRs, which allow 100% of your payment to go toward the principal balance during the promo period.

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