Our debt calculator allows you to keep track of all your debt and to incorporate the impact of new debt. Our calculator allows you to input a number of individual loans. The most important information is the principal amount, interest rate, maturity or term (in years) and, repayment type (interest only or principal and interest). We also require loan type but we don’t use it in the calculations at this time. Further we calculate your Debt Ratio (AKA debt-to-income ratio) using either the income you entered in your personal profile or the income you enter into this calculator.
The output of the debt calculator includes Total Debt (sum of current principal amount), Total Annual Debt Payments (including principal and interest), Total Lifetime Interest and Debt Ratio (annual debt service to income ratio). Further, under the lifetime balance tab we show a chart of your debt over time.
You can add new loans in three ways: 1) add a line item directly into the table using the + sign, 2) add a new line item manually by clicking the “Add New Data” link and 3) upload a file by clicking the “Add New Data” link. All fields entered after Debt Type are optional and are for future development. For example, a future version will handle floating rate debt as well as allow the user to input a manual payment (especially important for credit card debt). Future versions will also incorporate typical credit card repayment terms.
It lets you track all of your debt in one place and see the impact of taking on new debt. For each loan you enter the principal, interest rate, term in years, and repayment type (interest-only or principal and interest).
Debt Ratio (also called debt-to-income ratio) compares your total annual debt payments to your income, using either the income saved in your personal profile or income you enter directly into the calculator. It's one of four summary outputs shown alongside Total Debt, Total Annual Debt Payments, and Total Lifetime Interest.
Interest-only payments cover just the interest charge each period, leaving the principal balance unchanged, while principal-and-interest payments gradually pay down the loan balance over its term. Choosing the wrong type for a given loan will skew your Total Lifetime Interest and balance-over-time chart.
You can add a loan directly into the table using the + sign, add one manually through the "Add New Data" link, or upload a file of loans through that same link.
The Credit Card Calculator applies the same approach specifically to credit card balances, and the Budget Calculator can help you see how debt payments fit into your overall budget.
