How to Calculate Your Debt Payoff

Many people who are in debt want to know one thing---when they will be out of it. Calculating a debt payoff date may help you stay on track when trying to tackle your debt. Calculating your debt payoff takes only a few minutes.

Instructions

1

Gather all of your debt. Whether it's credit cards, car loans, personal loans or other types of debt, gather the statements for the amount of money you owe. Many people exclude their home mortgage when figuring out a debt payoff.

2

Record the amount of each debt alongside the interest rate that is being charged. Debt payoff calculators usually place columns for the debt owed beside the interest rate for that debt. Work your way down the calculator entering those amounts.

3

Enter the payments that you are making to those accounts. To receive an accurate indication of when that debt will be paid off, you must enter the amount of money you pay each month to each of those accounts. The more you pay, the faster the debt will be paid off.

4

Calculate your payoff date. Once the information has been entered, simply hit return and to see when your debt will be paid off.