A debt payoff plan shows how long fixed monthly payments take to clear a balance and how much interest you pay along the way.
How to use this calculator
- Enter your current debt balance.
- Enter the annual interest rate.
- Enter your planned fixed monthly payment.
- Review months to payoff and total interest.
Formula
The calculator simulates monthly interest accrual and payments until the balance is cleared, assuming a constant payment and no new charges.
Example
A $15,000 balance at 8% with $400 monthly payments may take about 44 months and roughly $2,500 in interest.
Frequently asked questions
What if my payment is too low?
If monthly payment does not cover interest, the balance may not decrease. Increase payment or seek lower rates.
Does this include new spending?
No. It assumes no additional charges are added to the balance.