Two figures in, a clear answer out. The debt calculator uses prepaid fee, balance #1, balance #2, balance #3, balance #4, balance #5, balance #6, number of debts, payment #1, payment #2, payment #3, payment #4, payment #5, payment #6, interest rate #1, interest rate #2, interest rate #3, interest rate #4, interest rate #5, interest rate #6 and interest rate to produce consolidation payoff after, avalanche payoff after and consolidation interest, applying the standard relationship for this problem in the order the calculation actually needs it.
What Is the Debt Calculator?
The debt calculator takes prepaid fee, balance #1, balance #2, balance #3, balance #4, balance #5, balance #6, number of debts, payment #1, payment #2, payment #3, payment #4, payment #5, payment #6, interest rate #1, interest rate #2, interest rate #3, interest rate #4, interest rate #5, interest rate #6 and interest rate and turns them into consolidation payoff after, avalanche payoff after and consolidation interest.
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Debt Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with prepaid fee set to 10, balance #1 set to 5, balance #2 set to 2, the calculator returns total debt of 7, and monthly payment of 110, and debt apr of 414.29. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out consolidation payoff after?
Enter prepaid fee, balance #1, balance #2, balance #3, balance #4, balance #5, balance #6, number of debts, payment #1, payment #2, payment #3, payment #4, payment #5, payment #6, interest rate #1, interest rate #2, interest rate #3, interest rate #4, interest rate #5, interest rate #6 and interest rate. The calculator then works through the relationship and reports consolidation payoff after, avalanche payoff after and consolidation interest.
What does the debt actually calculate?
It takes prepaid fee, balance #1, balance #2, balance #3, balance #4, balance #5, balance #6, number of debts, payment #1, payment #2, payment #3, payment #4, payment #5, payment #6, interest rate #1, interest rate #2, interest rate #3, interest rate #4, interest rate #5, interest rate #6 and interest rate and converts them into consolidation payoff after, avalanche payoff after and consolidation interest using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter prepaid fee?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Is the answer exact?
It is as exact as the formula and the inputs allow. The method itself is the standard one for this problem, so the only sources of error are the figures you enter and the precision you ask for.
Do I have to fill in every field?
Only the fields a particular result depends on. If you leave one blank, the results that need it simply show a note instead of a number, and everything else still works.