Debt Repayment Calculator UK: Find Your Exact Debt-Free Date
A debt repayment calculator shows exactly when you'll clear each debt and become debt-free based on your balances, interest rates, and monthly payments. UK users need a calculator that handles EAR rates for overdrafts differently from APR for credit cards—most calculators don't distinguish between them, producing inaccurate repayment timelines.
When will you be debt-free?
Not "a couple of years" or "eventually." A specific month and year.
That date changes everything. It turns an overwhelming burden into a countdown. It makes month 14 feel different from month 2 because you can see exactly how far you've come.
A debt repayment calculator takes your actual numbers and gives you that date. But for UK users, finding one that calculates correctly is harder than it should be.
This guide explains:
How debt repayment calculators work
What UK users specifically need
How to get your debt-free date in minutes
What to do once you have it
How Debt Repayment Calculators Work
At their core, repayment calculators simulate what happens to your debts month by month.
The Inputs
For each debt:
Current balance — What you owe today
Interest rate — APR or EAR (important distinction)
Minimum payment — What you must pay to avoid default
For your overall plan:
Monthly budget — Total you can put toward all debts combined
The Simulation
Each month, the calculator:
Adds interest to each balance
Subtracts your payments
Repeats until balance hits zero
Records when each debt clears
The Outputs
Debt-free date — When your last debt clears
Individual payoff dates — When each separate debt clears
Total interest — How much you'll pay beyond the original balances
Payment schedule — What to pay each debt each month
The Rollover Effect
Here's what makes strategic repayment powerful.
When your first debt clears, you don't pocket that payment. You roll it onto your next target debt, accelerating the payoff.
Example:
Starting payments:
Debt A: £120/month
Debt B: £80/month
Debt C: £150/month
When Debt A clears:
Debt B: £200/month (£80 + £120 rollover)
Debt C: £150/month
When Debt B clears:
Debt C: £350/month (£150 + £200 rollover)
This acceleration is why structured repayment beats making random extra payments whenever you have spare cash.
The UK-Specific Challenge
If you only have credit cards and loans, any repayment calculator will work reasonably well.
But if you have a UK overdraft, you need a UK-specific tool.
EAR vs APR: Different Maths
Credit cards, loans, car finance → APR (Annual Percentage Rate)
Interest calculated monthly
Formula: monthly rate = APR ÷ 12
UK bank overdrafts → EAR (Equivalent Annual Rate)
Interest calculated daily
Formula: monthly rate = (1 + EAR)^(1/12) - 1
Why It Matters
Same percentage, different rate type = different actual cost.
| Rate | Type | Monthly Equivalent | Monthly Cost on £1,000 |
|---|---|---|---|
| 35% | APR | 2.92% | £29.20 |
| 35% | EAR | 2.53% | £25.30 |
| 39.9% | APR | 3.33% | £33.30 |
| 39.9% | EAR | 2.84% | £28.40 |
A calculator that doesn't know the difference will:
Overestimate your overdraft costs (if treating EAR as APR)
Or underestimate them (if applying wrong formula)
Give you incorrect payoff order recommendations
Show wrong debt-free date
The 5 Repayment Strategies
Different approaches suit different situations. A good calculator shows you all options.
1. Avalanche (Highest Interest First)
Pay minimums everywhere. Put all extra money on the highest-rate debt.
Good for: Maximum savings, fastest mathematically optimal payoff Watch out for: Slow first win if your highest-rate debt is large
2. Snowball (Smallest Balance First)
Pay minimums everywhere. Put all extra money on the smallest balance.
Good for: Quick wins, motivation, simplifying finances fast Watch out for: Costs more in total interest
3. Avalanche → Snowball (Hybrid)
Start with avalanche. After clearing high-rate debts, switch to snowball for remaining ones.
Good for: Capturing most savings while getting some momentum later
4. Snowball → Avalanche (Hybrid)
Start with snowball for quick wins. Switch to avalanche once you've built momentum.
Good for: Those who need early motivation but don't want to sacrifice too much long-term
5. Cash Flow Index
Calculate: balance ÷ minimum payment for each debt. Pay lowest ratio first—these free up the most monthly cash per pound spent.
Good for: Urgently needing to free up monthly cash flow Watch out for: Can cost significantly more in interest
Real Example: UK Debts Compared
Your debts:
| Debt | Balance | Rate | Type | Minimum |
|---|---|---|---|---|
| NatWest Overdraft | £1,800 | 39.9% | EAR | £60 |
| Tesco Credit Card | £2,200 | 21.9% | APR | £55 |
| Very Store Card | £450 | 39.9% | APR | £18 |
Total debt: £4,450 Monthly budget: £300 (£167 extra beyond minimums)
Repayment timeline by strategy:
| Strategy | Debt-Free | Total Interest | First Win | Savings vs Snowball |
|---|---|---|---|---|
| Avalanche | Oct 2027 | £687 | Store card (3 mo) | £78 |
| Snowball | Nov 2027 | £765 | Store card (3 mo) | — |
| Cash Flow | Dec 2027 | £812 | Overdraft (8 mo) | -£47 |
Key insight: In this scenario, avalanche and snowball both clear the store card first—but avalanche then prioritises differently, saving £78 and one month overall.
Your results will differ based on your specific debts. Calculate your own timeline →
Step-by-Step: Getting Your Debt-Free Date
Step 1: List Your Debts
Open your banking apps and statements. For each debt, note:
Balance (exact current amount)
Rate (look for APR or EAR—they're different)
Minimum payment (or fixed payment for loans)
Overdraft tip: Find EAR in your banking app under "Overdraft" or "Account details." Most UK banks charge 35-40% EAR.
Step 2: Calculate Your Debt Budget
Monthly income minus essentials minus small emergency buffer = debt budget.
Be honest. An aggressive number you can't sustain helps nobody. Consistency beats ambition.
Step 3: Enter Into Calculator
Add each debt to DebtRiot. The calculator handles:
APR for credit cards and loans
EAR for overdrafts
0% promotional rates (tracks when they end)
Step 4: Compare Strategies
Look at all options:
Which saves most money?
Which gives quickest first win?
How different are the debt-free dates?
What feels sustainable for you?
Step 5: Note Your Date
Write down your debt-free date. Put it in your calendar. Tell someone.
That date is now your target.
What Happens After You Calculate
Having a debt-free date changes your psychology.
Month 1-3: The Setup Phase
You're establishing habits. Payments feel new. The balance drops feel small. This is normal—you're building the foundation.
Month 4-8: First Wins
Your first debt clears. That payment rolls to your next target. Momentum builds. You can see the system working.
Month 9-15: The Grind
Middle of the journey. Progress is steady but excitement fades. This is where most people quit. Your debt-free date keeps you anchored—you know exactly how far you've come.
Month 16+: Acceleration
Rollover payments compound. Debts fall faster. The end becomes visible. Your last few months feel rapid compared to your first.
Debt-Free Day
The date you put in your calendar arrives. Zero balances. The money that was going to creditors is now yours.
When a Calculator Isn't Enough
Debt calculators help if you can afford your payments and want to optimise strategy.
They don't help if you:
Can't cover minimum payments
Are receiving threatening letters
Face court action or bailiffs
Feel completely overwhelmed
For those situations, contact free UK debt advice:
They can negotiate with creditors, freeze interest, and set up affordable payment plans. No shame—that's exactly what they exist for.
Why Privacy Matters
Many "free" calculators require email signup. Your data gets sold to loan companies. Within days, your inbox fills with consolidation offers.
If you're in debt and trying to figure things out, the last thing you need is more financial product marketing.
DebtRiot runs entirely in your browser. No signup. No email. No data stored anywhere. Enter your numbers, get your date, close the tab—nothing saved.
Your debt situation is your business.
Get Your Debt-Free Date Now
Stop wondering when you'll be clear. Calculate it.
Enter your debts (3 minutes)
See all 5 strategies compared
Get your exact debt-free date
Free to use. No signup. UK-specific calculations.
Your date is waiting.
Frequently Asked Questions
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Your repayment timeline depends on total balance, interest rates, and monthly payments. A debt repayment calculator shows your exact date. For example, £5,000 at 22.9% APR with £200/month takes roughly 31 months. Calculate your specific timeline →
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The avalanche method (highest interest first) is mathematically fastest. However, the difference versus snowball (smallest first) is often only 1-3 months over a multi-year plan. The fastest method for you is the one you'll actually stick with. Compare strategies with your numbers →
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Enter each debt's balance, interest rate (APR or EAR), and minimum payment into a repayment calculator. Add your total monthly debt budget. The calculator simulates payments month by month, showing when each debt clears and your overall debt-free date.
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It depends on the rates and your situation. UK overdrafts use EAR, credit cards use APR—same percentage means different actual costs. A proper UK calculator handles both correctly and shows the optimal order. See which is first for your debts →
DebtRiot is a calculation tool, not financial advice. If you're struggling with debt payments, contact StepChange, National Debtline or Citizens Advice for free help.
