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.