Tax Debt Payoff Calculator
IRS debt compounds at 8% APR plus a 0.5%/mo failure-to-pay penalty — that's 14% annually. Enter your debt, payment, and see the true cost, payoff timeline, and how extra payments or a lump sum changes everything.
Debt Details
Payoff Scenarios
If you owe $50,000 or less and can pay within 72 months, you likely qualify for a streamlined installment agreement — no financial disclosure required. Offer in Compromise (OIC) may reduce the total owed if your debt exceeds your reasonable collection potential. Consult an enrolled agent or tax attorney for OIC eligibility.
First 12 Months
| Mo. | Payment | Interest | Penalty | Principal | Balance |
|---|---|---|---|---|---|
| 1 | $400.00 | $100.00 | $75.00 | $225.00 | $14,775 |
| 2 | $400.00 | $98.50 | $73.88 | $227.63 | $14,547 |
| 3 | $400.00 | $96.98 | $72.74 | $230.28 | $14,317 |
| 4 | $400.00 | $95.45 | $71.59 | $232.97 | $14,084 |
| 5 | $400.00 | $93.89 | $70.42 | $235.69 | $13,848 |
| 6 | $400.00 | $92.32 | $69.24 | $238.43 | $13,610 |
| 7 | $400.00 | $90.73 | $68.05 | $241.22 | $13,369 |
| 8 | $400.00 | $89.13 | $66.84 | $244.03 | $13,125 |
| 9 | $400.00 | $87.50 | $65.62 | $246.88 | $12,878 |
| 10 | $400.00 | $85.85 | $64.39 | $249.76 | $12,628 |
| 11 | $400.00 | $84.19 | $63.14 | $252.67 | $12,375 |
| 12 | $400.00 | $82.50 | $61.88 | $255.62 | $12,120 |
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