Debt
Debt payoff calculator
Enter up to three debts, add an extra monthly payment and pick a strategy to see when you will be debt-free and how much interest you save.
Some inputs need attention. The results below are from your last valid entries.
Assumptions
Assumes fixed rates, no new borrowing and fixed minimum payments. Your plan rolls freed-up minimums into the next debt; the minimums-only comparison does not.
Total remaining balance
| Year | Balance (your plan) | Interest that year | Balance (minimums only) |
|---|---|---|---|
| 1 | $9,405 | $1,725 | $12,063 |
| 2 | $2,785 | $699.34 | $8,697 |
| 3 | $0 | $59.91 | $4,827 |
| 4 | $0 | $0 | $571.66 |
| 5 | $0 | $0 | $0 |
Avalanche vs snowball
The avalanche method sends every spare dollar to the debt with the highest APR while paying minimums on the rest. It minimizes total interest. The snowball method targets the smallest balance first, which wipes out accounts sooner and can keep you motivated, at the cost of a little more interest.
How the calculation works
Each month interest of APR÷12 is added to every balance, minimum payments are made, and all remaining money goes to the priority debt. When a debt is cleared its minimum rolls into the next one, so your total monthly payment never drops. That rollover, plus any extra payment, is what makes both strategies faster than paying minimums alone.
Methodology
Every month, interest of APR÷12 × balance is added to each debt, then payments are made. Your plan pays every minimum plus the extra amount, directing all leftover money to the priority debt, with freed-up minimums rolling forward. The minimums-only baseline pays each debt just its own fixed minimum (never more than its balance) with no rollover and no extra, so debts clear on their own separate timelines. If a minimum is smaller than that debt's monthly interest, the baseline never finishes and is shown as “Over 100 years”.
Getting debt-free faster
- Even $50 extra a month can shave years off high-rate card debt.
- Consider a lower-rate consolidation loan if you qualify, but avoid running the cards back up.
- Once you are clear, redirect the payment into savings and investing. See the compound interest calculator and the emergency fund calculator.
Frequently asked questions
Which is better, avalanche or snowball?
Avalanche generally costs the least interest under the calculator’s assumptions. Snowball gives quicker early wins. If the results are close, pick the one you will stick with.
What if my minimum payment is less than the monthly interest?
The balance would grow forever. The calculator flags this unless you add an extra payment large enough to overcome the interest.
Do minimum payments change as the balance falls?
Often yes for credit cards, where the minimum is a percentage of the balance. This calculator keeps each minimum fixed, which is a reasonable simplification but slightly overstates how fast debt clears, since real minimums usually shrink with the balance.
This calculator is for education and illustration. It does not account for taxes, fees or your personal situation unless stated, and is not financial advice.
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