Become Debt-Free with Debt Payoff

Disclaimer: This is an estimate based on simplified assumptions. Actual repayment may vary due to fees or payment changes.

Our Debt Payoff Calculator helps you plan your debt repayment by estimating the time and interest costs. Enter your details to visualize your path to becoming debt-free.

How to Use the Debt Payoff Calculator

1. Enter your debt amount (e.g., $10,000) to start.
2. Input the annual interest rate (e.g., 5%) for your loan or credit card.
3. Specify your monthly payment (e.g., $200) to see how it affects payoff time.
4. Click Calculate Payoff to view your repayment timeline and chart.

The Logic Behind It

The calculator uses the amortization formula to determine the time to pay off your debt:
n = log(PMT / (PMT - r * P)) / log(1 + r)
Where:
- n = Number of months
- PMT = Monthly Payment
- P = Principal (Debt Amount)
- r = Monthly Interest Rate (Annual Rate / 12)
This formula calculates how long it takes to pay off the debt and tracks the balance over time for the chart.

Benefits of Using the Debt Payoff Calculator

• Clarity: See exactly how long it will take to become debt-free.
• Savings: Understand total interest costs and plan to minimize them.
• Motivation: Visualize your debt decreasing over time to stay focused.
• Strategy: Adjust monthly payments to find the fastest payoff plan.