3.3 Debt Payoff
Lesson Objective: Learn how to use the debt payoff calculator
Debt Payoff Calculator
Using this calculator is quite easy. All you have to do is select the debt accounts that you want to estimate payoff for in the table's header row. Then enter the minimum payment amount and a proposed payment amount. The table will auto populate with the number of months required to pay off the bill and the interest that will accrue over that time. The chart will display graphs for the account you choose in the "Debt Name" box at the top of the worksheet.
Remember that these calculations are made based on the interest rate that you enter for the account on the "Account Balances" worksheet. The interest that the worksheet calculates is compounded monthly. If your debt account is compounded daily, the estimates will only be accurate for amounts owed up to about $50,000.