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Debt Payoff Calculator

Enter up to five debts and any extra amount you can pay each month. Pick the avalanche or snowball method. You get the debt-free time, the total interest and the payoff order.

Your numbers

Result

Estimate for information only, not professional advice. Last reviewed .

How we calculate it

Every month, interest is added to each debt (balance × rate ÷ 12) and each debt gets at least its minimum payment. Whatever is left of your total budget goes to one target debt. The budget is the sum of all the minimums plus your extra payment, and it stays the same, so when a debt is paid off its minimum is rolled onto the next target.

With the avalanche method the target is the debt with the highest rate. With the snowball method it is the one with the smallest balance. For example, 10,000 at 12% with a 200 minimum takes 70 months and 3,932.37 of interest. Adding 100 a month cuts it to 41 months and 2,224.95 of interest.

Assumptions and limits

  • The avalanche method usually costs the least interest. The snowball method clears debts sooner, which some people find easier to stick with. Try both on your numbers.
  • Rates are taken as fixed and no new debt is added. Leave a row empty if you have fewer than five debts. Type 0 for a debt with no interest.
  • If the payments cannot clear the debts within 100 years, for example when a minimum is below the monthly interest, the calculator tells you to raise a payment.

Frequently asked questions

What is the debt avalanche method?

You pay the minimum on every debt and put all the extra money on the debt with the highest interest rate. When it is paid off, you move to the next highest. This minimizes the interest you pay.

What is the debt snowball method?

You pay the minimum on every debt and put all the extra money on the smallest balance first. Each debt you clear frees up its minimum for the next. It builds momentum but can cost more interest.

How is the saving worked out?

The calculator compares the plan with paying each debt separately with only its own minimum. The difference in interest and in months is shown. It includes the effect of rolling freed-up minimums forward.

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Worked example (a fixed example using the starting numbers, it does not change as you type)

Inputs: Method = Avalanche (highest interest rate first); Extra payment each month = 200; Debt 1 balance = 3000; Debt 1 interest rate (%) = 22; Debt 1 minimum payment = 90; Debt 2 balance = 1500; Debt 2 interest rate (%) = 8; Debt 2 minimum payment = 50; Debt 3 balance = 9000; Debt 3 interest rate (%) = 15; Debt 3 minimum payment = 220.

  • Debt-free in 2 years 5 months
  • Months to debt-free 29
  • Total interest $2,628.73
  • Total paid $16,128.73
  • Interest saved vs minimum payments only $2,912.22
  • Months saved vs minimum payments only 29

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Last reviewed: . Formulas and assumptions are described on our methodology page. For information only; not professional advice.