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Repayment Calculator

Calculate how long it will take to pay off a loan or credit card with fixed monthly payments.

Repayment Calculator

Calculate how long it takes to pay off a loan with a fixed monthly payment.

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Enter your loan balance and payment to find your debt-free path

Understanding the Planning Your Path to Debt-Free Living

Whether you're tackling a credit card balance, a personal loan, or a student debt, knowing exactly when you'll reach the finish line is a powerful motivator. This Repayment Calculator helps you visualize the impact of your monthly payments and determines the specific date you'll finally be debt-free.

Guide

How to use the Planning Your Path to Debt-Free Living

  • 1Start by entering your current 'Loan Balance' (the total amount you still owe).
  • 2Input the 'Annual Interest Rate' (APR) stated on your loan agreement or statement.
  • 3Enter the 'Monthly Payment Amount' you plan to contribute each month.
  • 4Instantly see your 'Debt Free Date' and the total number of months required.
  • 5Review the 'Total Interest' to see exactly how much the loan is costing you in borrowing fees.
Applications

Common Use Cases

Credit Card Payoff: Determining if your current minimum payment will ever actually pay off the balance.
Personal Loans: Planning your budget around a fixed repayment schedule.
Debt Consolidation: Evaluating if a new loan with a lower interest rate will significantly shorten your repayment time.
Snowball vs. Avalanche: Testing how an extra $50 or $100 per month can dramatically pull forward your debt-free date.

The Maths Behind the Calculation

N = -log(1 - (r × B) / P) / log(1 + r)

Where N is the number of months, r is the monthly interest rate (annual rate / 12), B is the loan balance, and P is your monthly payment. This formula determines how many payments are needed to bring the balance to zero.

Knowledge Base

Frequently Asked Questions

Why does it say I'll never pay it off?

If your monthly payment is less than the interest being charged each month (Balance × Monthly Interest Rate), your debt will actually grow over time. This is called negative amortization.

Can I make bi-weekly payments?

Yes! Making bi-weekly payments effectively adds one extra full payment per year, which can shave months or even years off a long-term loan.

Does this account for variable rates?

No, this calculator assumes a fixed interest rate. If your rate changes, you'll need to update the calculation with your new rate and remaining balance.

What is the 'payoff' vs 'payment'?

The 'payoff' amount is the total you'd need to pay today to close the account, including any accrued interest. The 'payment' is what you send to the bank each month.

Regional Notice: United States

"Federal tax estimates are based on 2024 brackets. Consult a tax professional for official filing."