Formula
The balance is charged monthly interest, then the payment is applied:
Months = count until the balance reaches zero
Several debts paid smallest-first are on the snowball page.
Assumptions
- One debt, one fixed payment.
- The rate does not change.
Worked example
A $4,000 balance at 12% with a $200 payment clears in 1 year 11 months.
Input definitions
- Monthly payment
- Must be more than a month of interest.
Limitations
This is an estimate, not a loan offer, tax filing, or investment advice. The currency control changes the symbol only.
Questions
How is this different from the credit-card page?
That page leads with interest. This page leads with the time to zero.
Can I enter several debts?
Use the snowball page for two balances, or debt consolidation for a new loan.