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Finance

Debt Payoff Calculator

Estimate how many monthly payments will repay one balance at a fixed annual rate.

Amounts stay on this deviceMethod and assumptions below

Your financial inputs

Runs on your device

YOUR FINANCIAL SUMMARY

Your result

Let’s calculate.

Use the Calculate button to see your result.

Estimate based on your inputs and the stated assumptions.

How to use this tool

  1. Enter current balance, annual nominal rate (%), fixed monthly payment.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Each month, add interest at annual rate ÷ 12 ÷ 100, then subtract the fixed payment. The final payment is reduced to the remaining amount due.

A WORKED EXAMPLE

With a 1,200 balance, zero interest and payments of 100 per month, repayment takes 12 months and total interest is zero.

What to keep in mind

This simplified model compounds monthly, excludes fees and new borrowing, and holds the rate and payment constant. Many credit cards accrue interest daily. Results are estimates, not a lender payoff quote; scenarios over 1,200 months are rejected.

Reference: CFPB: How credit card interest is calculated

Common questions

Why can a payment be too low?

If the payment does not exceed the first month’s interest, the balance cannot fall under this model.

Can I use this for a changing minimum payment?

No. It assumes the same payment each month. A minimum-payment schedule needs the lender’s rules.

Methodology maintained by ClarityKit. How these tools are built and checked.