Using the Debt Payoff Calculator
Compare a sustainable payment with a slightly higher one. The difference in total interest can help you understand the value of an extra payment without assuming you can commit every spare amount indefinitely.
Worked example
Use the example inputs below to reproduce this result. These are the form's starting values, not recommended targets. Changing your inputs updates your result above; this worked example stays fixed for comparison. Results are rounded for display.
Example inputs
- Outstanding balance
- 5000
- Annual rate (%)
- 18
- Monthly payment
- 250
Example result
- Months to payoff
- 24
- Total interest
- 989.13
- Total paid
- 5,989.13
Method and assumptions
Accrues monthly interest and then applies a fixed payment, with a smaller final payment. No new borrowing or fees.
Check the payment assumption
A debt-payoff estimate assumes the planned payment actually reaches the balance on the modeled schedule. New borrowing, fees or rate changes can extend the timeline. Compare the regular payment with the interest accruing each period, then review any extra-payment assumptions. A payoff projection is most useful when it is updated as the balance and terms change.
Common question
Does the last payment have to equal the others?
No. The model uses a smaller final payment when the remaining balance plus interest is below your regular amount.
Guide updated .