How the Debt Payoff Calculator works
Combining balances into one estimate gives a quick view of repayment capacity. For multiple debts, calculate a balance-weighted average APR, then compare the result with a debt-by-debt plan.
Method: The combined balance is reduced monthly after interest using the regular and extra payment entered.
Inputs to review
- Total debt balance: Use a realistic current value and test a conservative alternative.
- Weighted average interest rate: Use a realistic current value and test a conservative alternative.
- Current monthly payments: Use a realistic current value and test a conservative alternative.
- Additional monthly payment: Use a realistic current value and test a conservative alternative.
How to interpret the result
Use the extra-payment field to test a realistic amount that can be sustained every month. Directing extra cash to the highest-rate balance usually reduces interest fastest, while a smallest-balance-first approach may provide motivational milestones.
Assumptions and limitations
A blended rate cannot reproduce each account's minimum payment, promotional period, daily interest, or changing APR. Do not treat this estimate as a consolidation offer.
Recalculate when rates, balances, income, goals, or time horizons change. A useful estimate is a range built from several plausible scenarios, not a single precise-looking number.