How do I Calculate a Payoff Debt Reduction?

When you pay off a debt, it is a freeing experience. You no longer have to write a check every month to that creditor. You free up cash to do other things in your life. If you want to pay off one or more debts, you should embark on a debt reduction plan where you put all of your extra money toward paying off the balance quickly. Calculate the time it will take you to pay off the debt if you commit yourself to this type of plan using an online calculator.

Step 1

Enter your credit card details, including balance and rate into the Bankrate credit card calculator. Insert your minimum payment as well as the additional payment you want to make to calculate the amount of time it will take to complete the debt reduction process. You also have the option to enter the exact number of months you want it to take to become debt-free and see how much of a minimum payment you need.

Step 2

Use the Calculators4Mortgages early payoff loan calculator to map out your payoff debt reduction plan if you're specifically trying to pay down a mortgage or similar installment loan. Insert details about your mortgage loan, including your initial balance, term in years, rate, payments you've made and the number of years by which you want to pay off your mortgage. The tool shows you the amount you need to pay each month to reach your debt reduction goal.

Step 3

Type in information about your debts in the "Accelerated Debt Payoff Calculator" tool if you have a list of debts you want to pay off. Enter the creditor name, balance, rate and minimum payment into each row, and then calculate the results. The tool displays the total interest and number of payments until each debt is finished. You can then go back and enter more of a payment in any of the rows to recalculate the results. At the bottom of the table, you can view the total time and interest you'll save with your new debt payoff plan.

the nest