Debt Payoff Calculator

What is a debt payoff calculator?

A debt payoff calculator tells you how long it will take to pay off debt, based on the amount you owe, the interest rate, and the amount of your monthly payment.

Once you've entered the details about your debt, the calculator does the math for you. You can see at a glance how long it will take to pay off what you owe. 

You may be able to input different payment amounts or interest rates to explore how adjusting your debt repayment plan might impact your payoff time or total cost. That's helpful if you're not sure how much of your budget you can commit to debt payments each month. 

Using a debt payoff calculator can be illuminating, especially if you feel overwhelmed by what you owe. Understanding the numbers and time frame could help you set a realistic target for getting rid of your debt.  

What types of debt should you include in a debt payoff calculator?

Debt payoff calculators work with various kinds of debt. You can use them to estimate repayment for:

• Credit cards

• Personal loans

• Student loans

• Medical bills

• Vehicle loans

• Mortgage loans

If you're trying to pay off multiple types of debt, you might want to run calculations for each one separately. You can start with your high priority debts first, then work your way through the rest of the list. 

Priority debts are usually those that are costing you the most money in interest. For most people, that means credit cards. Credit card debt is one of the most expensive kinds of debt since interest rates can easily top 20%. 

A higher interest rate can make it harder to chip away at the debt. Using a debt payoff calculator gives you a starting point for working out how to pay it down.

How do you use a debt payoff calculator to make a debt repayment plan?

Debt payoff calculators take the guesswork out of creating a debt repayment plan by showing you the amount you'd need to pay each month to reach your goal. 

Let's say, for example, that you have $25,000 in credit card debt and your current monthly payment is $726. 

A debt payoff calculator could show you options for getting rid of the debt so that you can move on to working toward other financial goals.  

You can use a debt payoff calculator to explore various debt strategies that might lower your costs. 

If you can get on a debt plan that has a lower monthly payment, you could then decide what to do with the extra money you have each month. You might set it aside in an emergency fund to create a financial safety net. Or you may use it to work toward another goal, like saving for a home or retirement. 

What's the best way to pay off a large amount of debt?

There's no single best way to pay off large amounts of debt. Some of the possibilities for repaying debt include:

• Debt avalanche

• Debt snowball

• Debt consolidation

• Debt resolution

In a debt avalanche, you pay off debts from the highest APR to the lowest. You don't worry about the balance owed to each debt; you just focus on getting rid of your most expensive debts first. 

The debt snowball is the same, but you focus on your smallest debt first.

Debt consolidation means combining multiple debts into one. For instance, you might take out a personal loan and use it to consolidate higher-interest credit card debts. Going forward, you'd make one payment to the loan each month. For some people, streamlining their debt into fewer monthly payments is easier than keeping up with several payments. 

Debt resolution works by getting your creditors to agree to accept less than the full amount you owe but consider the debt satisfied. The difference is forgiven. This option may be appropriate if you have a financial hardship that’ll make it difficult or impossible to pay off your debts in full. Debt resolution is for unsecured debts, like credit cards.

Does the Achieve Debt Payoff Calculator take into account interest rates and minimum payments?

Our debt payoff calculator estimates what you might pay if you enroll in a debt resolution program. 

The calculator is based on the median debt resolution offers we made over the last 90 days for the amount of credit card debt you selected. Your actual terms, including monthly payments and savings, might vary. 

Achieve's calculator only considers credit card debt. The APR, estimated monthly payments, debt costs, payoff times, and savings generated are assumptions only. 

Get a free debt consultation  to find out what debt payoff strategy might be best for your situation. Our debt consultants can review your debt and financial situation to help you decide which solution makes the most sense. 

What if I don't have the money to pay off my debt?

If you don't have money in your budget for debt repayment, you have a few options. 

Debt consolidation

If your budget is strained but you’d be okay if you had a lower monthly payment, you could try consolidating your debts, which sometimes increases cash flow. You would need to meet the lender’s requirements for credit score and income to be eligible. 

Debt management plan

If you need help managing your debt and getting your budget back on track, a nonprofit credit counseling agency may be able to enroll you in a debt management plan. Most DMP participants have to agree to stop using credit cards while in the program. The credit counselor may be able to negotiate lower interest rates on your existing credit card debts. You’ll be required to make a monthly payment designed to pay off your debts in full in 3-5 years. It’s possible to successfully complete a DMP, but for some people the payment is too high.

Bankruptcy

Bankruptcy is a legal process for dealing with unsecured debts. In a Chapter 7 bankruptcy you may be able to walk away from your unsecured debts in a few months, but you might have to give up some assets (things you own). In a Chapter 13 bankruptcy, you don’t give up any assets but you do give up all of your disposable income for 3-5 years. 

Debt resolution

You could negotiate with creditors yourself or have professional debt experts do it for you. Reputable debt resolution companies have established relationships with creditors and may be able to get better results than you could get for yourself.