Meet a Debt Payoff Goal Calculator

If you're focused on paying off debt, setting clear goals with a smart strategy can make the process more manageable. Using our Meet a Debt Payoff Goal Calculator, create a realistic timeline for yourself to pay off any form of debt from long-term mortgages to high-interest credit card balances. 

To get started, please have the following information available:

• Loan Balance: This is the total amount of debt you currently owe and can be for something like a mortgage, auto loan, credit card, and more.
• Interest Rate: The current annual percentage rate (APR) assigned to your loan.
• Current Monthly Payment: This is the amount you are currently paying each month to bring down your debt.
• Payoff Goal: In months, provide the timeline for when you would like to pay off your debt.

How to Make a Debt Payoff Goal

If you're ready to manage your debt more effectively to pay it off in less time and save on accumulating interest, it's wise to set a clearly defined payoff goal. Here are four simple steps to get you started down the road toward financial freedom:

1. List All Your Debts: Begin by listing out all your existing debts—include the balance, APR, and minimum monthly payment for each.
2. Set a Target Payoff Date: Decide when you want to be debt-free. This might be within the next year or somewhere farther down the road for larger loans.
3. Rank Your Debts: Prioritize your debts based on their APR and balances. Typically, high-interest debts, such as credit cards, should be paid off first.
4. Use Our Calculator: Input your data into the calculator to see how long it will take you to pay off your debt with your current monthly payment versus how much you'll need to pay each month to meet your target deadline. You'll also see how much interest you can save by meeting your debt payoff goal.

5 Strategies for Paying Off Debt

1. The Snowball Method: If you have multiple lines of debt, pay off the smallest debt first while making minimum payments on larger debts. Once you pay off the smallest debt, move to the next smallest. This strategy provides quick wins that can help you stay motivated.
2. The Avalanche Method: If you a have debt with a higher APR, such as a credit card, make the highest payment possible on that debt while making minimum payments on everything else. Once the debt is paid in full, use the same strategy with other debts, using APR as the deciding factor. This strategy helps you save more on interest over time.
3. Debt Consolidation: Consider consolidating multiple high-interest debts into a single loan that offers a lower interest rate. This strategy can help you both save on high interest accumulation and make repayment simpler with one payment versus several.
4. Adjust Your Budget: Review your budget regularly to identify areas where you can cut back or cut out non-essential expenses, then redirect those savings toward your debt.
5. Automatic Payments: If your lender provides auto-draft for your payments, use them to maintain consistency and avoid missed payments that can incur additional fees and interest.