Debt Payoff Calculator
Estimate how long it will take to pay off your debt and the total interest paid based on your monthly payments.
Introduction
Welcome to the Debt Payoff Calculator! This tool helps you determine the time required to pay off your debt and the total interest cost based on your debt amount, interest rate, and monthly payment.
How to Use
- Enter the total amount of debt you owe.
- Enter the annual interest rate on your debt.
- Enter the monthly payment amount you can afford.
- Click "Calculate Payoff" to see how many months it will take to pay off the debt and the total interest paid.
- Review the summary and notes in the result section.
- Click "Reset" to clear the form and start over.
- Click "Save Entries" to store your calculations locally.
Understanding Debt Payoff
This calculator estimates the time to pay off debt using an iterative amortization approach, accounting for monthly interest accrual. Key points include:
- Monthly interest is calculated on the remaining balance (annual rate / 12).
- Each month, the payment reduces the balance after interest is added, until the balance reaches zero.
- Total interest is the sum of all interest paid over the payoff period, and total paid is the sum of all payments.
Calculations assume a fixed interest rate and consistent monthly payments. If the monthly payment is too low, payoff may not be possible (interest exceeds payment).
FAQs
What if my monthly payment is too low?
If your payment is less than the monthly interest, the debt balance will grow, and payoff won't be possible. Increase your payment to cover at least the interest.
Does this account for variable interest rates?
No, this calculator assumes a fixed interest rate. Variable rates may affect the payoff timeline and interest cost.
How accurate is this calculation?
This is an estimate based on consistent payments and fixed rates. Actual payoff may vary due to missed payments, fees, or rate changes.
About This Calculator
Built by xAI, this Debt Payoff Calculator provides a simple way to estimate debt repayment timelines for educational purposes. For precise planning, consult a financial advisor or lender.