Debt Payoff Calculator
Plan paying off several debts: compare avalanche (highest APR first) and snowball (smallest balance first) by months to debt-free and total interest.
Results
Payoff order
| # | Avalanche | Snowball |
|---|---|---|
| 1 | Credit card — month 25 | Personal loan — month 15 |
| 2 | Personal loan — month 29 | Credit card — month 30 |
- Each month interest is added (APR ÷ 12), every debt gets its minimum payment, and the extra amount plus minimums freed by paid-off debts go to the target debt: highest APR first (avalanche) or smallest balance first (snowball).
What is Debt Payoff Calculator?
Simulates paying off multiple debts month by month with their minimum payments plus an extra amount, comparing the avalanche method (highest interest rate first) with the snowball method (smallest balance first). It shows the time to become debt-free, total interest and the order in which each debt is paid off.
How to use Debt Payoff Calculator
- List each debt with its Balance, APR % and Min. payment; add rows as needed.
- Enter the Extra payment you can add each month.
- Compare the results for avalanche and snowball and the payoff order table.
Example
Card 5,000 at 20% (min 150), Loan 2,000 at 10% (min 50), extra 100/month
Avalanche 2 yr 5 mo, interest 1,478.14; snowball 2 yr 6 mo, interest 1,744.76
When to use Debt Payoff Calculator
Use it to choose a payoff strategy and see the value of paying extra. Avalanche always costs the least interest; snowball can be more motivating because small debts disappear sooner. It assumes fixed APRs and no new charges.
How Debt Payoff Calculator works
Every month each balance grows by balance × APR ÷ 12. Each debt then receives its minimum payment (never more than its balance), and the remaining budget – the extra payment plus minimums freed by debts already paid off – goes to the target debt: highest APR first for avalanche, smallest balance first for snowball. The simulation stops when all balances are zero; if a debt can never be paid (minimum below interest) an error is shown instead of a result.
Common Use Cases
- Paying off several credit cards
- Deciding between avalanche and snowball
- Seeing how much an extra 100 per month saves
- Building a month-by-month payoff plan
FAQs
Which method is better?
Avalanche minimises interest. Snowball pays off small debts first, which some people find easier to stick to. The tool shows the difference so you can decide.
What if my minimum payment is less than the interest?
That debt would grow forever, so the tool reports that it cannot be paid off and asks you to raise the payments.
Are new purchases included?
No. The plan assumes you stop adding to the balances.