A familiar situation
If you are focusing on one balance, compare a manageable monthly payment with a more ambitious payoff amount. For multiple debts, calculate each separately or use a method that accounts for all balances together.
How to use this calculator
- Enter current balance, annual interest / apr, monthly payment.
- Select Calculate to see the answer and its breakdown.
- Keep a scenario, change an input and compare the results.
Use consistent units and check the assumptions below before applying the result.
How debt payoff is calculated
The balance is charged interest each month before the fixed payment is applied. The estimate assumes no new purchases, rate changes or penalties during payoff. Formula: Balance after each month = balance × (1 + APR/12) − payment. Use the displayed details to inspect the intermediate amounts and replace example assumptions with terms from your own quote or records.
Balance after each month = balance × (1 + APR/12) − payment.A $10,000 balance at 12% APR with $500 monthly payments clears in about 22 months.
Assumptions & useful context
Assumes no new charges, fees or rate changes.
Financial projections use your assumptions. Actual returns, lender terms, fees and tax rules can differ; these results do not guarantee a future outcome.
Frequently asked questions
Debt Payoff Calculator: what does the result include?
A payment must exceed the first month’s interest for the balance to decline. The calculator reports an error when the entered amount cannot amortize the debt.
Debt Payoff Calculator: which assumptions matter most?
No. The calculation assumes the balance receives no new charges and that the APR remains constant.