Finance
Debt Payoff Calculator
Calculate how long it takes to pay off a debt and total interest paid with a fixed monthly payment.
Months to Pay Off
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How It Works
Uses the loan payoff formula n = -log(1 - (r Γ B) / P) / log(1 + r), where r is monthly rate, B is balance, and P is monthly payment. If your payment doesn't exceed the monthly interest, the debt will never be paid off.
Example
$8,000 credit card at 19.99% APR paying $250/month takes about 43 months and costs ~$2,700 in total interest.
Frequently Asked Questions
What happens if my payment is less than the interest?
If your monthly payment does not exceed the monthly interest charge, your balance will grow each month β the debt can never be paid off at that rate.
How do I pay off debt faster?
Pay more than the minimum. Avalanche method: pay highest-rate debts first. Snowball method: pay smallest balances first for psychological wins.
What is a debt consolidation loan?
A single loan used to pay off multiple debts, ideally at a lower interest rate. It simplifies payments but requires good credit to qualify for favorable rates.