This free online Get Out of Debt Calculator will calculate how much time and money you could save by paying off your debts using the "rollover" method. Plus, the calculator will also give you 60 booster rockets that you can strap to your get out of debt plan.
If you have 10 or fewer debts and are not interested in the booster rocket options, please use the simplified Rapid Debt Reduction Calculator instead. The RDRC also includes some important concepts to keep in mind when formulating your rollover or snowball payoff plan.
In case you're not familiar with the Rollover Method of debt repayment, here it is in a nutshell. As each debt is paid off, that debt's payment amount is then applied to (rolled onto) the next debt, and so on until all debts are paid off. As you will see when you use the get out of debt calculator, the rollover method can save you a ton of money in interest charges, and allow you to get out of debt sooner than you ever thought possible.
The Bend Over Method of paying off your debts is where you continue to make just the minimum payment on each debt for years to come. In this case you are basically bending over so the lending institutions can keep giving it to you up the wazoo.
If you take an action that results in permanently lowering your monthly expenses by, let's say, $10, that $10 savings will continue to add up each month. After one year you will have saved $120. After 10 years you will have saved $1,200. And so on. But what most people fail to realize is that if you apply that $10 monthly savings to paying off high interest debt, the savings can add up to thousands of dollars of interest savings over time.
The Get Out of Debt Calculator includes a scrollable list of 60 different ways you can reduce your monthly expenses. When you use these savings to pay off debt, it's like adding booster rockets to your plan.
Finally, once you complete your debt-freedom plan, be sure to write down your freedom date and the total amount you will be applying to your debts. Then, visit the Debt to Financial Freedom Calculator to see how long it will take to become financially free by investing your freed-up payments.
With that, let's use the get out of debt calculator to see how much time and interest you will save by paying off your debts using the rollover method, combined with your choice of booster rockets.
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Start month and year: Select the month and year you would like to begin your get out of debt plan. This should be the current month or next month at the latest, otherwise you will need to come back to the get out of debt calculator and re-enter your debts with their new current balances.
Monthly amount you can add to your debt payoff plan: Optional: Enter an amount you feel you could add to your get out of debt plan on a monthly basis. This is over and above any booster rockets you might incorporate into your plan.
One time amount you would like to add to plan: Optional: Enter a one-time amount you feel you could add to your get out of debt plan upfront. The get out of debt calculator will automatically recalculate when changing this field, so feel free to try different amounts to see what difference each will make.
I want to pay off my debts: Choose the order in which you would like to pay off your debts. You can change the order at any time, in which case any entered debts will be resorted and your plan will be recalculated. I recommend using the default setting (from lowest to highest balance) because this will insure you experience success early on in your plan. This builds momentum and encourages you to stick with the plan.
Enter/Save/Delete Debt Column: This column is for entering each one of your debts, one debt at a time. As you add each debt it will appear in a list of debts located just beneath the calculator. Once you have added one or more debts, this column will also allow you to make changes to debts you have entered, or delete a debt you may have entered by mistake. Before you can add a debt to your payoff list, or save changes to a debt in your list, you must first click the Calculate Stats button.
60 Booster Rockets Column: This scrollable column lists a ton of ideas for saving money to add to your get out of debt plan.
Save/Period Column: For each booster rocket you plan to incorporate into your get out of debt plan, enter the amount and select the period the amount relates to (day = day, wdy = workday assuming 5 workdays per week, wk = week, mon = month, yr = year). The calculator will automatically recalculate when you tab out of a field you made changes to, or after selecting a time period other than monthly.
Name: The name of the debt in 15 characters or less.
Balance: The current balance of the debt you are adding. This number is constantly changing, so I suggest you call your lender and ask for the current payoff amount.
Rate: The annual interest rate for the debt you are entering. Enter as a percentage (for .065, enter 6.5). If a debt's balance owed has more than one interest rate (e.g., one for cash advances and one for purchases), use the higher percentage rate. In financial forecasting it's always best to estimate income low and expenses high.
Pmt: The minimum payment dollar amount for the current month.
Type: If you make the same payment amount each month, select Fixed. If you only make the minimum payment amount, and the payment amount keeps getting smaller each month, select Declining. The get out of debt calculator will calculate what percentage your current payment is of the balance owed, and use that percentage to calculate all future payments, or $15, whichever is greater.
Sort: Optional: If you would like to determine your own custom payoff order, enter a number in this field. If you leave the field blank the calculator will number the debt for you. You can always change this number by selecting the debt from the list, making the change, clicking the "Calculate Stats" button, and then the "Save" button.
Payments: After clicking the Calculate Stats button, this field will show how many payments you have remaining based on your balance, rate, and payment inputs. This field must contain a number before the calculator will allow you to add a debt, or to save changes to one you have selected for editing.
Interest: After clicking the Calculate Stats button, this field will show how much interest you will pay on this debt between now and when you make the final payment. The figure is based on your balance, rate, and payment inputs. This field must contain a number before the calculator will allow you to add a debt, or to save changes to one you have selected for editing.
Booster rocket: The calculator will automatically total up your monthly booster rockets as you tab out of each field you've made changes to, and/or as you select the period the amount applies to. This amount will be added to the first debt's payment and rolled onto the next debt as the previous debt is paid off.
Months saved: This is how many months you will shave off of your debt repayment if you switch from your current Bend Over Method to the Rollover Method with booster rockets.
Interest saved: This is how much interest you will save if you switch from your current Bend Over Method to the Rollover Method with booster rockets.
Debt free date: This will be the date you will be debt free if you switch from your current Bend Over Method to the Rollover Method with booster rockets, and if you stick to the plan you created.