U.S. National Debt Calculator
Introduction to the National Debt Calculator
The U.S. National Debt Calculator allows you to accurately amortize any debt up to 99 trillion dollars!
- Supports both “Normal” and Interest-Only loans.
- Create a bond coupon schedule.
Did you arrive on this page expecting a strong argument against the U.S. National Debt?
If so, you may be disappointed.
As a U.S. citizen, I am concerned about the debt, and I will address that concern shortly. I will also raise a question that few people appear to ask—not elected officials, not the media, and not voters. If that discussion is what you want to read, skip the next section and continue below the calculator.
If you continue, I first want to explain how this calculator works because it operates differently from many amortization schedules. I created it for two purposes. First, I wanted a calculator that could handle very large debt amounts. And what debt is larger than the current National Debt of the United States? There is no larger debt.
The Calculator-Calculate your share of the U.S. national debt.
To set your preferred currency and date format, click the “$ : MM/DD/YYYY” link in the lower-right corner of any calculator.
Information
Our National Debt and the Sources Used
At times, large municipalities or other government entities have issued debt in excess of one billion dollars and needed a coupon payment schedule. This calculator creates an amortization schedule for bond debt. When you preview or print the schedule, there is no mention of “National Debt.” The printed schedule matches the style of other schedules on this site. This is intentional.
Second, this calculator introduces the concept of shared debt. For example, a parent and child may agree to split payments on a student loan. This calculator supports that situation. Enter the total loan amount and enter two for the number of households. The calculator divides the payment in half, and the schedule amortizes half the debt.
All values reflect the latest available data as of March 2024. (Links open in a new tab.)
According to the U.S. Treasury Department, the debt is nearly $34.5 trillion. The exact amount is preloaded, and clicking the Clear button resets the value.
The debt increases daily. If you want to update the value, use the TreasuryDirect link titled “Debt to the Penny.”
The U.S. Census Bureau publishes the number of U.S. households. The most recent figure (131,434 in thousands) is from November 2023. To check for updates, see: Table HH-1. Households by Type: 1940 to Present (.xls file).
The default interest rate is the current coupon rate on the 30-year U.S. Government Bond, as reported by Bloomberg (as of March 2024, 4.25%). This rate is used to model a 30-year amortization.
In one sense, this slightly overstates the problem. Much of the debt has maturities shorter than 30 years, and many securities carry rates below 4.25%. For example, 10-year bonds currently have a 4.0% coupon rate. Even a 0.25% difference can produce a significant change in interest costs on debt exceeding $34 trillion. (Rates have recently fluctuated more than usual, so this information may become outdated quickly. The links are provided for verification.)
On the other hand, using 4.25% may understate the problem. If the Government borrows for five years, future interest rates are unknown. The debt may need to be refinanced at a rate higher than 4.25%.
In any case, 4.25% is a reasonable assumption. You may change the rate as needed.
Why does the debt have to be refinanced?
About Bonds and Refinancing
Government debt is financed with bonds (and short-term Treasury notes). Governments sell bonds to raise funds. Bondholders receive coupon payments, usually paid every six months.
Coupon payments are interest payments only. They do not reduce the principal.
Therefore, the borrowing functions like an interest-only loan. The principal balance does not decline.
You can model this by setting the amortization method to interest-only. A single large payment is due at maturity. If the principal is not available, the debt is refinanced when the bond matures. Carrying principal forward while also running annual budget deficits explains why the National Debt continues to increase.
A Few Final Words About the National Debt
Some observers worry the United States could “end up like Greece” — short on cash and facing austerity imposed by bondholders.
Others, including certain economists, are less concerned about today’s level of U.S. debt. CNSNEWS.COM quotes Paul Krugman, Nobel Laureate and New York Times columnist:
“The United States is a country that has its own currency — can’t run out of cash because we print the money. If you even try to think what would happen — suppose that investors get down on the United States. Even so, that would weaken the dollar, not send interest rates soaring, and that would be good. That would help our exports,” Krugman said on C-SPAN’s “Newsmakers.”
Who is right?
I do not know.
But the more important point is that “who is right” is not the central issue — and the National Debt Calculator helps illustrate why.
Change the number of households to 1 so the calculator amortizes the entire debt. Set the amortization method to interest-only (for the reasons discussed above). Select Print Preview and look at the “Total Interest Due” — just over $44 trillion (44,068,646,712,178.99). [When this value was last updated, it was $11,122,909,633,333.28. The increase reflects both a higher interest rate assumption and a higher total debt outstanding.]
That is trillion with a capital “T.” Put differently, the interest alone could fund the entire Federal budget at current levels for more than four years. It could fund Defense, Social Security, Medicare, and other programs — for multiple years — with interest payments only.
Over the next 30 years — not even a full working lifetime — the interest we pay will approach today’s total outstanding debt. Interest is the price paid for borrowing. It is not the cost of what we buy with borrowed funds. Interest makes every national purchase more expensive.
The increase in interest expense is significant. Which leads to one final question.
A Question for All Politicians
The next time you speak with an elected official, ask this:
What are we receiving in return for these interest payments?
If they cannot provide a clear answer, it may be time to reconsider our approach.
If you have thoughts or questions, feel free to share them below.
National Debt Calculator Help
This calculator lets you view debt in two ways: as shared debt or as individual debt.
With shared debt, the total amount entered is divided by the value in “Number of Households.” This value can represent any group. For example, if two people share a car loan, enter 2 for the number of households and enter the car loan amount as the “Total National Debt.”
To produce a standard amortization schedule showing the full payment obligation, enter 1 for “Number of Households.”
Calendar Tip: When using the calendar, click the month name at the top to display all months, then (if needed) click the year to display years. Select the year, select the month, and then select the day. You may also scroll through months and days as usual.
Comments, suggestions & questions welcomed...