Summary

See months to payoff, total paid, and interest cost.

Calculation details

Payments first cover monthly interest; remaining principal reduces the balance.

Formula

Iterate monthly: interest = balance × r/12; principal = payment − interest.

Worked example

$8,000 balance at 18% APR

A $250 monthly payment clears the balance in a finite number of months.

How it works

Enter balance, APR, and planned monthly payment.

Frequently asked questions

What does this debt-payoff estimate estimate include?

It assumes a fixed payment and constant APR with monthly compounding of interest.

When is this debt-payoff estimate most useful?

When comparing how long a fixed monthly payment takes to clear a revolving balance.

Are displayed values rounded?

The formula keeps full numeric precision. Values are rounded only when formatted for display.

Can actual results differ?

Yes. Minimum-payment rules, fees, promotional APRs, and extra payments change payoff timelines.

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