Debt Payoff Calculator

Enter your debts and an extra monthly payment, then compare the Debt Snowball (lowest balance first) and Debt Avalanche (highest interest first) strategies to find your fastest, cheapest path to debt freedom.

Financial Disclaimer

Results are estimates based on fixed interest rates, consistent monthly payments, and no additional charges or fees. Actual payoff dates and interest totals may vary. This tool is for educational and planning purposes only and does not constitute financial advice. Consult a certified financial planner or credit counselor for personalized guidance.

Your Debts

Add each debt (credit card, personal loan, student loan, etc.) below.

Amount above all minimum payments combined

❄️ Snowball: pay lowest balance first - faster motivation wins 🔥 Avalanche: pay highest rate first - minimises total interest

Debt-Free In
Total Paid
Total Interest
Monthly Budget

Payoff Order

# Debt Balance APR Paid Off Interest Paid

Principal vs Interest

Payment Schedule

First 24 months shown
Month Payment Principal Interest Remaining

Extra Payment Impact

Time saved vs minimum-only
Interest saved vs minimum-only

Reminder: These projections assume fixed interest rates, no missed payments, and no new charges. Real-world results may differ due to variable rates, fees, promotional periods, or minimum payment changes. This calculator does not constitute financial advice. Consult a licensed financial professional for guidance specific to your situation.

How the Strategies Work

️ Debt Snowball

Focus all extra payment on the lowest-balance debt first. When it is paid off, roll that payment into the next smallest. Popularised by Dave Ramsey. The wins come quickly, which helps motivation - but you typically pay more total interest.

Debt Avalanche

Focus all extra payment on the highest-APR debt first. This is mathematically optimal - you minimise total interest paid and become debt-free in the same or fewer months. Takes longer for your first win, which can be harder to maintain.

Debt rollover: When a debt is fully paid off, its minimum payment is automatically added to the payment pool for the next debt. This "snowball / avalanche roll" is what makes these strategies dramatically faster than paying minimums only.

FAQ

The Avalanche method always saves equal or more interest than Snowball because you attack the highest-cost debt first. The difference grows with the gap between your highest and lowest APRs. If all your APRs are the same, both strategies produce identical results.
Most experts recommend prioritising high-interest consumer debt (credit cards, personal loans) before your mortgage, which typically has a much lower rate and may carry a tax benefit. You can include your mortgage to see the full picture, but focus your extra payments on high-rate debts first.
Set Extra Monthly Payment to $0 to see your minimum-only timeline. Even an extra $25-50/month can significantly reduce your payoff time. Non-profit credit counseling agencies can also negotiate lower rates or payment plans on your behalf.
Many issuers calculate minimums as a percentage of the outstanding balance (often 1-3%) plus interest, so the minimum falls as you pay down the debt. This calculator uses fixed minimums for simplicity and consistency. To be conservative, enter the minimum from your most recent statement.

Quick Tips

  • • Pay at least the minimum on all debts every month - late fees and penalty rates derail any strategy
  • • Avoid taking on new debt while paying off existing balances
  • • Build a small emergency fund ($500-1,000) before aggressively paying down debt, so surprises don't push you back to the card
  • • Call your card issuer and ask for a rate reduction - it works more often than people expect

Typical Credit Card APRs

Excellent credit12-17%
Good credit18-24%
Fair credit25-29%
Store / subprime29-36%

Ranges are illustrative. Check your actual statement for your exact APR.

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This tool is for educational planning only. It does not constitute financial, legal, or credit advice. Results are mathematical estimates and do not account for fees, rate changes, or individual circumstances. For personalised guidance, consult a certified financial planner (CFP) or a non-profit credit counselor.