1. What is the Debt Payoff Calculator?

This calculator estimates how long it will take to pay off credit card debt using the fastest method (debt avalanche approach). It calculates the exact time needed when making fixed monthly payments.

2. How Does the Calculator Work?

The calculator uses the debt payoff equation:

Where:

• \( P \) — Principal balance ($)
• \( D \) — Monthly payment ($)
• \( R \) — Monthly interest rate (APR/12 as decimal)
• \( T \) — Time to payoff (months)

Explanation: The equation accounts for compound interest and calculates exactly how many months are needed to pay off the debt with fixed payments.

3. Importance of Debt Payoff Calculation

Details: Knowing your exact payoff timeline helps with financial planning, motivates debt repayment, and shows the impact of different payment amounts.

4. Using the Calculator

Tips: Enter your current credit card balance, the fixed monthly amount you can pay, and your APR. The calculator will show how long it will take to become debt-free.

5. Frequently Asked Questions (FAQ)

Q1: What is the debt avalanche method?
A: A strategy where you pay minimums on all debts except the one with the highest interest rate, which you attack aggressively.

Q2: Why is this the fastest payoff method?
A: By targeting the highest interest debt first, you minimize total interest paid and become debt-free sooner.

Q3: What if I can't pay the calculated amount?
A: The calculator shows the fastest possible payoff. Even smaller payments will work but take longer.

Q4: Should I include minimum payments?
A: No, enter only the extra amount you can pay beyond minimums for accurate fastest payoff calculation.

Q5: What if I have multiple credit cards?
A: This calculator is for one card. For multiple cards, use the avalanche method on the highest APR card first.