THE TOOLS ADVISERS USE. FREE FOR EVERY NEW ZEALANDER.
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FREE TOOLS / Home & lending

Debt payoff

The month you’re debt-free. Or the honest warning that this payment never gets you there.

Make it your own

Start with an example, then change any value. Enter 0 for none; a blank field cannot be calculated. All money amounts are NZD.

Your entries stay in this calculator. They are not saved or sent anywhere.

Your estimate

Estimated debt-free time

3 years 2 months

This assumes you make the same monthly payment, add no new borrowing and the interest rate stays fixed.

Total monthly payment
$350.00
Total interest
$3,156.02
Total repayments
$13,156.02
Balance after month 38
$0.00
Illustrative amounts over time, in NZDToday: $10,000.00. Month 38: $0.00. All chart values are available in the expandable text list below.$10K$0TodayMonth 38
Illustrative amounts in NZD. Engine-provided chart points may be rounded to whole dollars; headline figures use the engine’s summary precision.
View all chart values
Today
$10,000.00
Month 1
$9,800.00
Month 2
$9,597.00
Month 3
$9,391.00
Month 4
$9,182.00
Month 5
$8,970.00
Month 6
$8,754.00
Month 7
$8,535.00
Month 8
$8,313.00
Month 9
$8,088.00
Month 10
$7,859.00
Month 11
$7,627.00
Month 12
$7,392.00
Month 13
$7,153.00
Month 14
$6,910.00
Month 15
$6,664.00
Month 16
$6,414.00
Month 17
$6,160.00
Month 18
$5,902.00
Month 19
$5,641.00
Month 20
$5,375.00
Month 21
$5,106.00
Month 22
$4,832.00
Month 23
$4,555.00
Month 24
$4,273.00
Month 25
$3,987.00
Month 26
$3,697.00
Month 27
$3,403.00
Month 28
$3,104.00
Month 29
$2,800.00
Month 30
$2,492.00
Month 31
$2,180.00
Month 32
$1,862.00
Month 33
$1,540.00
Month 34
$1,213.00
Month 35
$882.00
Month 36
$545.00
Month 37
$203.00
Month 38
$0.00
What this estimate assumes
  • One debt is modelled at a fixed nominal annual rate divided by 12. Interest is charged before each month-end payment.
  • The entered monthly payment and extra payment remain constant. No new borrowing, fees or rate changes are included; the final payment is limited to the balance due.
  • The model stops at repayment, when payments make no progress, or after 600 months. Failure to clear is reported rather than shown as a debt-free date.

How to read this tool, in plain English

For information only, not financial advice. These simplified estimates do not consider your full circumstances. Assumed rates are not forecasts or guaranteed returns. Talk to a financial adviser before making financial decisions.

HOW TO READ THIS TOOL

The month you’re free, or the warning you need.

A date, or a plain warning

Either the time to clear the debt, or a clear statement that this payment never does. The tool does not pretend.

The cost of waiting

Total interest and total repayments show what the debt really costs at this pace. Add an extra amount and watch both fall.

Month by month

The chart tracks the balance every month, so you can see how much of the early payments go to interest.

How the model works

One debt, at a fixed annual rate divided by twelve. Interest is charged each month before the payment at month end. Your payment and any extra stay constant, and the final payment is capped at what is owed.

What it leaves out

New spending on the card, fees, rate changes, balance-transfer offers and minimum payments that fall as the balance falls. If the payment cannot beat the interest, the model stops and says so rather than showing a date. It also stops after 600 months.

The assumptions, in full

  • One debt is modelled at a fixed nominal annual rate divided by 12. Interest is charged before each month-end payment.
  • The entered monthly payment and extra payment remain constant. No new borrowing, fees or rate changes are included; the final payment is limited to the balance due.
  • The model stops at repayment, when payments make no progress, or after 600 months. Failure to clear is reported rather than shown as a debt-free date.

A FEW GOOD QUESTIONS

Before you
trust the number.

An estimate is only as good as the question behind it. These are the ones people ask most about this tool.

All ten tools
It says the debt never clears. Why?

Because the monthly payment is less than, or roughly equal to, the interest being added, so the balance does not fall. Even a small extra payment can change that. If it cannot, talk to an adviser or a free budgeting service about consolidation or a hardship arrangement.

I have several debts. Which one do I enter?

Try each on its own to see its cost. The general rule is to pay minimums on all of them and put anything extra toward the highest interest rate first, though clearing a small balance can be worth it for the momentum. An adviser can lay out the full picture.

What rate should I enter for a credit card?

The purchase interest rate on your statement, not a promotional balance-transfer rate. If part of the balance is on a promotional rate that expires, the picture is more complicated than one calculation can show.

Should I pay off debt or save?

High-interest debt usually costs more than savings earn, so clearing it first is the common answer. Keep a small emergency buffer so a surprise does not go straight back on the card. Your circumstances decide the balance; this tool only shows the cost of one debt.

YOUR MONEY. YOUR CALL.

Stop guessing.
Start knowing.

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