How to use the debt payoff calculator
Enter the balance, rate and the payment you can sustain.
Enter the balance
Use the current statement balance, not the original loan amount.
Add the APR
Use the annual percentage rate on the account.
Test a payment
Adjust the monthly payment until the payoff date is acceptable.
What does this tool do?
A fixed monthly payment clears a balance on a predictable schedule unless the payment is smaller than the monthly interest. This calculator shows the payoff time, total interest, and the payment needed to clear the balance in a chosen number of months.
The Formula
n = −ln(1 − rB/P) ÷ ln(1 + r), where r = APR ÷ 12Frequently Asked Questions
Why does the payoff time jump when the payment is small?
When the payment only covers the interest, almost nothing goes to principal. As the payment approaches the monthly interest charge, the payoff time grows quickly.
Does this include new purchases?
No. The calculation assumes no new charges and a fixed interest rate. Adding new spending will extend the payoff date.