Debt Payoff Calculator

Getting out of debt is one of the most important financial goals you can achieve. The debt payoff calculator helps you create a strategic plan to eliminate all your debts efficiently, comparing two popular methods: the Snowball method and the Avalanche method.

The Snowball method focuses on paying off the smallest debts first, providing psychological wins and motivation. The Avalanche method targets the highest interest rate debts first, saving you the most money in interest payments. This calculator shows you both approaches so you can choose the strategy that works best for your situation.

Whether you have credit card debt, personal loans, or multiple debts, this free tool helps you see exactly how long it will take to become debt-free and how much interest you'll pay along the way.

Follow these steps to plan your debt elimination strategy:

1. 1

   Enter Your Debts

   Add each debt with its current balance, interest rate (APR), and minimum monthly payment. Click 'Add Debt' to include multiple debts.

2. 2

   Set Extra Payment

   Enter how much extra you can pay toward debt each month beyond minimum payments. This accelerates payoff and saves interest.

3. 3

   Choose Payoff Method

   Select Snowball (smallest balance first) or Avalanche (highest interest first). The calculator shows results for both methods so you can compare.

4. 4

   Review Results

   See total months to debt-free, total interest paid, and interest savings. Compare Snowball vs. Avalanche to choose the best strategy for you.

Snowball Method: Pay off debts from smallest to largest balance. You make minimum payments on all debts, then put any extra money toward the smallest debt. Once it's paid off, you move to the next smallest. This method provides quick wins and psychological motivation.

Avalanche Method: Pay off debts from highest to lowest interest rate. You make minimum payments on all debts, then put extra money toward the highest interest debt. This method saves the most money in interest payments.

Which to Choose: If you need motivation and quick wins, choose Snowball. If you're disciplined and want to save the most money, choose Avalanche. This calculator shows both so you can see the difference.

1. Make All Minimum Payments

Never miss a minimum payment. Late payments damage your credit and add fees. Always pay minimums on all debts, then apply extra to your target debt.

2. Pay as Much Extra as Possible

Every extra dollar accelerates your payoff. Even $50-100 extra per month can save thousands in interest and cut years off your timeline. Look for ways to increase income or reduce expenses.

3. Consider Debt Consolidation

If you have high-interest debt, consider consolidating with a lower-rate personal loan or balance transfer card. This can reduce interest and simplify payments, but only if you don't accumulate new debt.

4. Stop Using Credit Cards

While paying off debt, stop using credit cards for new purchases. Cut them up or freeze them if necessary. You can't get out of debt while continuing to accumulate it.

5. Build a Small Emergency Fund First

Before aggressively paying off debt, build a $1,000 emergency fund. This prevents you from going deeper into debt when unexpected expenses arise.

6. Stay Motivated

Track your progress monthly. Celebrate milestones. Join debt-free communities for support. Remember why you're doing this—financial freedom is worth the sacrifice.