Debt Payoff Calculator
Map your path to debt freedom
Strategic Payoff Analysis
Preferred: Avalanche
Payoff Accelerator Impact
Method Comparison Summary
| Payoff Method | Time to Debt Free | Total Interest Cost |
|---|---|---|
| Avalanche (Highest APR first) | 0 months | 0.00 |
| Snowball (Lowest balance first) | 0 months | 0.00 |
Snowball vs Avalanche
The **Avalanche Method** is mathematically optimal, saving you the most interest. The **Snowball Method** is psychologically reinforcing, helping you build momentum by knocking out small balances quickly.
Whichever you choose, consistency and applying a fixed "extra payment" is the most important factor in speeding up your debt payoff.
Multi-Currency Capability
Format and compare payoff interest in your country's local currency using our global configuration selector.
Active Currency: USD ($)About the Debt Payoff Calculator
Paying off credit cards, auto loans, and student debt requires a clear strategy. Rather than making minimum payments blindly, you can calculate how applying surplus budget accelerates payoff times. This Debt Payoff Calculator compares the two most popular strategies—Debt Snowball and Debt Avalanche—to show you which best fits your goals.
How to Calculate Debt Payoff
To manually structure a debt repayment plan, gather your balances and APR rates, then choose a prioritization strategy:
- List Debts: Record the current balance, APR (interest), and minimum payment for all loans.
- Determine Total Minimum: The baseline budget you must pay each month.
- Avalanche Method: Sort debts by highest APR rate first. Allocate any extra payment to the top debt, while paying minimums on others.
- Snowball Method: Sort debts by smallest balance first. Allocate any extra payment to the smallest balance to secure quick victories.
How to Work Out a Debt Payoff Plan
Suppose you have two debts:
- Credit Card: $3,000 balance at 20% APR (Min payment: $90)
- Personal Loan: $5,000 balance at 8% APR (Min payment: $120)
- You have $200 extra to pay each month ($410 total monthly budget).
- Avalanche: CC is higher rate (20% vs 8%). You pay $290 to CC ($90 min + $200 extra) and $120 to Personal Loan. When CC is gone, you roll the entire $290 over, paying $410 to the Personal Loan until debt-free.