Skip to content
VELNARO

Debt Payoff Calculator

Enter a balance, interest rate and the monthly amount you can afford to see when you will be debt-free and the total interest you will pay. Try a higher payment to see the difference.

Time to clear the debt

5 years 2 months

Debt-free date

November 2031

Total interest

$11,000.00

Total repaid

$31,000.00

Number of payments

62

If you double the payment

2y 0m — saves $7,000.00

How this was worked out

  1. Step 1Monthly interest = 20,000 × 0.015 = $300.00
  2. Step 2Each payment of $500.00 reduces the balance by $200.00 at first
  3. Step 3Repeating this each month, the balance reaches zero after 62 payments

Assumes a fixed rate, no new spending on the account, and payments made every month.

Formula

n = −log(1 − i·B ÷ P) ÷ log(1 + i) where i = monthly rate, B = balance, P = payment

Example

Input

$20,000 at 18% with $500/month

Result

≈ 5 years 5 months; total interest ≈ $12,300

Frequently asked questions

Most of the early payment covers interest. As the balance falls, more of each payment reduces what you owe.

Related tools

Keep going — these tools solve the problems that usually come next.

Mortgage Calculator

Popular

Monthly repayments, total interest and the full cost of a home loan.

Finance

Loan Calculator

Popular

Monthly payment, total interest and amortisation for any loan.

Finance

Salary Calculator

Popular

Break an annual salary into monthly, weekly, daily and hourly pay.

Finance

Discount Calculator

Popular

Work out the sale price and how much you save.

Finance