How to Plan Your Way to Debt-Free
A single fixed payment, paid every month without fail, turns a vague pile of debt into a finish date you can plan around.
What is the Debt Payoff Calculator?
When several debts are combined into one total with an average rate, the same payoff maths as a single loan applies: interest accrues monthly on what is still owed, and a fixed payment above the monthly interest gradually clears it. This calculator estimates the months to debt-free, the time in years and months, and the total interest paid.
How to use it
- Enter your total debt across all balances.
- Enter the average annual rate and your fixed monthly payment.
- Press Calculate to see your debt-free date in months and the interest cost.
Worked example
Total debt 12000, average APR 15%, payment 300 per month: about 55.80 months (roughly 4 years and 8 months), total paid about 16739.29, total interest about 4739.29.
Does paying a little extra each month make a big difference?
Yes, more than most people expect. Extra money goes straight to the balance once interest is covered, so the balance falls faster and every later month accrues less interest. Even a modest increase can cut months off the payoff and save a noticeable amount of interest.
Frequently asked questions
What rate should I use for several debts?
Use a weighted average: weight each rate by the size of its debt. It is an estimate, so the real payoff may differ slightly if rates change.
What if I can only pay the interest?
Then the debt never shrinks. The payment must be above the monthly interest charge for the balance to fall at all.