Work out debt free date instantly with clear inputs, formula shown and shareable results.
The debt-free date converts an abstract balance into a calendar commitment, which is far more motivating. It requires the payment to exceed one month's interest, otherwise the balance never reduces.
Debt-free date
Months = -ln(1 - balance × r / payment)/ln(1+r); date = first payment plus that many months
Figures are estimates for planning only. Prices, returns, inflation and personal circumstances all change. This is not financial or tax advice — speak to a qualified adviser before making decisions.
Because everything above the interest charge attacks principal, and that effect compounds each month.
Yes on cost grounds. Ordering by rate minimises total interest paid.