The purpose of this Debt Reduction calculator is to illustrate how an extra monthly payment amount will shorten the amount of Interest paid and the number of months to pay it. When you make a payment higher than your required monthly payment it is applied directly to principal. This can be used for any type of loan.
Tutorial for the Debt Calculator below.
Input
To use this calculator to enter What You Owe (in dollars), Interest Rate, and Current Monthly Payment, and an amount of $0 or greater which represents the Extra Payment you will send in each month.
Results
The results will show you the Time Savings : how many months you have saved, and the Money Saved : how much you have saved in interest. The results are also expressed in a sentence so it is easier to understand. There is also a table to show you the amount you would be paying each month and how it pays down the loan broken into principal and interest payments.
Your Results
If you add to your monhtly payment, you will pay off this debt in payments instead of , and you will save in interest.