Money & shopping
Fixed payment debt payoff
Estimate a payoff schedule from a balance, interest rate and monthly payment.
A clear answer. Here’s how.
Interest each month is balance × annual nominal rate / 12. Subtracts the supplied month-end payment and adjusts the final payment to clear the balance. Requires a payment greater than the initial monthly interest. Caps the schedule at 1,200 months; no new borrowing, fees or rate changes.
See a worked example
Worked example
A fixed demonstration, separate from the values you enter above.
- Starting debt balance
- 5000
- Nominal annual interest (%)
- 12
- Fixed monthly payment
- 200
Example result
| Month | Payment | Interest | Principal | Remaining balance |
|---|---|---|---|---|
| 1 | 200 | 50 | 150 | 4,850 |
| 2 | 200 | 48.5 | 151.5 | 4,698.5 |
| 3 | 200 | 46.985 | 153.015 | 4,545.485 |
| 4 | 200 | 45.45485 | 154.54515 | 4,390.93985 |
| 5 | 200 | 43.9093985 | 156.0906015 | 4,234.8492485 |
Total interest 782.44; total paid 5,782.44. Full-precision arithmetic, before fees and lender rounding.