Revolving Debt Calculator
Calculates a payment amount for a series of revolving debt instruments to pay off that debt in a certain amount of time. [https://www.investopedia.com/terms/r/revolvingcredit.asp | Revolving debt] examples include lines of credit and credit card debt.
- Debts: a table where the first column is the borrowed amount (loan amount) and the second is the interest rate expressed as a percentage.
- Periods: desired pay off period for the debt.
- Payment: monthly payment amount to pay off the revolving credit.
A business secured multiple lines of credit for daily cash flow fluctuations in operations. The business borrowed $30,000 at a 4.75% interest rate, $15,000 at a 5% interest rate, and $50,000 at 6.75% interest rate. If the business wished to pay back the debt over 60 months, what would be the total monthly payment?
- Periods: 60 months
The monthly payment would be $1,829.95 to pay off all three loans over 60 months.
credit card debt
line of credit
home equity line of credit