Debt Payoff Calculator
List your debts and how much extra you can pay each month. See when you will be debt-free with the snowball and avalanche methods, how much interest each costs, and which one to choose.
Your debts
Total balance over time
Assumes fixed APRs, interest charged monthly (APR ÷ 12), no new charges, and that freed-up minimum payments roll into the next debt. Estimates only, not financial advice.
How to use the Debt Payoff Calculator
- Enter each debt: a name, the current balance, the APR and the minimum monthly payment. Three example debts are filled in to start.
- Add or remove debts with + New debt and the × button.
- Enter your extra monthly payment, the amount you can pay on top of all the minimums.
- Press Compare to see the payoff date, total interest and savings for snowball, avalanche and minimum payments only.
- Follow the payoff order of the recommended strategy, and check the chart to see your total balance fall.
How the payoff simulation works
Each month the calculator does three steps for every debt still owed:
1. interest = balance × APR ÷ 12 is added to the balance.
2. The minimum payment is paid on every debt.
3. Whatever is left of your monthly budget (all minimums + your extra payment) goes to the target debt: the smallest balance for snowball, or the highest APR for avalanche. When a debt is paid off, its minimum stays in the budget and rolls into the next target.
Example for one debt: a $1,000 balance at 12% APR with a $100 monthly payment. Month one adds 1,000 × 0.12 ÷ 12 = $10 of interest, so after paying $100 the balance is $910. Repeating this, the debt is gone in 11 months with about $58.98 of interest in total.
Snowball vs avalanche: a worked comparison
Three debts with $550 of minimum payments and $200 extra each month ($750 in total):
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Credit card | $6,500 | 24.99% | $195 |
| Car loan | $9,800 | 6.5% | $280 |
| Personal loan | $2,400 | 11.5% | $75 |
| Strategy | Payoff order | Debt-free in | Total interest |
|---|---|---|---|
| Avalanche | Credit card → Personal loan → Car loan | 29 months | $2,905.08 |
| Snowball | Personal loan → Credit card → Car loan | 30 months | $3,310.64 |
| Minimums only | – | 58 months | $6,284.58 |
Here the avalanche saves about $406 compared with the snowball, while the snowball clears its first debt in month 10 instead of month 21. Both save more than $2,900 compared with paying only the minimums.
Tips to get out of debt faster
Even a small extra payment makes a big difference, because every extra unit goes straight to principal and stops future interest. Stop adding new charges to the cards you are paying off, ask your card issuer for a lower APR, and consider a 0% balance transfer only if you can clear it before the promotional rate ends. Put windfalls such as tax refunds or bonuses toward the current target debt, and keep a small emergency fund so a surprise bill doesn't go back on the card.
Frequently asked questions
What is the debt snowball method?
With the snowball method you pay the minimum on every debt and put all extra money toward the debt with the smallest balance. When it is paid off, its payment rolls into the next smallest. The quick early wins help many people stay motivated.
What is the debt avalanche method?
With the avalanche method you put all extra money toward the debt with the highest interest rate first, while paying minimums on the rest. It almost always costs less interest than the snowball and often gets you debt-free sooner.
Which is better, snowball or avalanche?
Avalanche is usually cheaper because it attacks the most expensive debt first. Snowball can be better for you if seeing debts disappear quickly keeps you on track. When balances and rates are similar, the difference is often small, so pick the one you will stick with.
How is interest calculated?
Each month the calculator adds interest equal to the balance times the APR divided by 12, then applies your payments. Real credit cards often compound daily, so actual interest may be slightly higher.
What happens if my minimum payment is less than the interest?
Then the balance grows or never falls when you pay only the minimum. The calculator warns you and stops the simulation after 600 months (50 years). Paying more than the monthly interest is essential to make progress.
Does the calculator include new spending?
No. It assumes no new charges, fixed interest rates and no fees. Stopping new borrowing on the cards you are paying off is a key part of any debt payoff plan.