Debt payoff calculator
Enter your balance, interest rate and the amount you pay each month to see how long it takes to clear the debt and how much interest you will pay in total.
Time to clear the debt
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How this calculator works
- Convert the annual rate to a monthly rate.
- Each month, add the interest to the balance and subtract your payment.
- Repeat until the balance reaches zero and count the months.
- If the payment does not cover the monthly interest, the balance never falls and the calculator says so.
Formula: Amortise the balance at the monthly payment until it reaches zero
Frequently asked questions
Why does my debt never go down?
If your payment is less than the interest charged each month, the balance grows. The calculator warns you when this happens. You would need a higher payment or a lower rate to make progress.
Does paying more than the minimum help?
Yes. Every extra dollar goes straight to the principal, which reduces the interest charged in later months. Small increases in payment can cut months off the payoff time.
What if I cannot afford the payment?
Contact a non-profit credit counselling service or a Licensed Insolvency Trustee before the debt escalates. They can explain your options, including a consumer proposal.
Sources
- Office of the Superintendent of Bankruptcy — Government of Canada — OSB
- Financial Consumer Agency of Canada — Financial Consumer Agency of Canada
Important legal information
Promissory.ca is not a lender, bank, mortgage broker or credit counsellor. We do not make lending decisions and we do not charge you a fee to use this service.
Submitting an application does not guarantee approval. All applications, rates and terms are set and approved solely by the individual lender or licensed professional.
Rates, fees and loan amounts vary by lender, province, loan type and your credit profile. Advertised rates are the lender's lowest offered rate and may not be available to you.
Lenders may perform a credit check with one or more credit bureaus, including Equifax and TransUnion. A hard credit inquiry may affect your credit score.
There is no obligation to accept any offer presented to you. Review every agreement carefully before signing.
Borrow only what you can reasonably afford to repay. Late or missed payments may result in additional fees, collection activity and negative credit reporting.
We handle personal information in accordance with the Personal Information Protection and Electronic Documents Act (PIPEDA). See our Privacy Policy for how we collect, use and protect your information.
If you are struggling with debt, consider contacting a non-profit credit counselling service or a Licensed Insolvency Trustee before borrowing more.
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