Debt Payoff Calculator
List your debts, add whatever extra you can pay each month, and see your debt-free date, total interest and the order to pay things off. It compares the avalanche and snowball methods side by side. Nothing you type leaves your browser.
How this calculator works
Each month, every debt charges interest at its annual rate divided by 12, and every debt gets its minimum payment. Your extra amount goes to one target debt. When a debt is paid off, its minimum payment rolls into the extra, so the amount aimed at the next debt grows each time one is cleared. Your total monthly payment stays the same from start to finish.
The avalanche method targets the highest interest rate first, which almost always costs the least interest. The snowball method targets the smallest balance first, which clears whole debts sooner and can help you stay motivated. The comparison table shows both, plus what happens if you only ever pay the minimums.
Getting the inputs right
- Balance: today's payoff balance from your latest statement or online account.
- APR: the annual percentage rate on the statement. For a 0% promotional rate, enter 0, but plan to clear that balance before the promotion ends.
- Minimum payment: the current required minimum. On credit cards it usually falls as the balance falls; the calculator keeps it fixed, which is the more conservative approach since you keep paying the higher amount.
Freeing up money for the extra payment
Every dollar of extra payment shortens the plan. Look at reducing operating costs for a business, or breaking the paycheck-to-paycheck cycle at home. Keep a small cash buffer while you pay down debt, so a surprise bill doesn't go straight back on a card. The emergency fund calculator helps you size it.
Common questions
The avalanche method saves the most interest because it attacks the most expensive debt first. The snowball method usually costs a little more, but paying off whole debts early can keep you motivated. If the interest difference in the comparison table is small, pick the one you are more likely to stick with.
The balance grows instead of shrinking, and that debt would never be paid off on minimums alone. The calculator flags this. Add an extra monthly amount or ask the lender about a lower rate or a hardship plan.
Most people do best keeping a small emergency cushion first, often one month of essential costs, so surprises don't create new debt. After that, extra money toward high-interest debt usually earns a better return than a savings account.
Yes. Business credit cards, lines of credit and term loans all work the same way here. For a line of credit, use the current balance and the minimum payment the lender requires.
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