Debt Payoff Calculator
Snowball vs avalanche: list your debts and see your debt-free date, the interest each plan costs and the payoff order.
How to Use Debt Payoff Calculator
- 1List each debt: its name, balance, interest rate (APR) and minimum monthly payment. The example shows a credit card, a store card and a personal loan.
- 2Enter the extra amount you can pay each month on top of the minimums.
- 3Choose a plan: avalanche (highest interest rate first) or snowball (smallest balance first).
- 4See your debt-free date, the interest each plan costs, how much paying extra saves compared with minimums only, and the order the debts are cleared.
- 5Copy or share the plan, and keep paying the same total each month as debts disappear.
Frequently Asked Questions
Snowball or avalanche: which is better?
The avalanche (highest rate first) always costs the least interest. The snowball (smallest balance first) clears whole debts sooner, which many people find keeps them going. In the example, $15,200 of debts with $250 a month extra, the avalanche saves about $94 more interest, while the snowball clears its first debt in 5 months instead of 17. Both finish in 25 months.
How much does paying extra save?
In the example, paying only the minimums takes 44 months and costs about $5,723 in interest; adding $250 a month clears everything in 25 months for about $2,644 with the avalanche. That's around $3,000 saved, and debt-free 19 months sooner.
What happens when a debt is paid off?
Its minimum payment rolls into the next debt in your plan, on top of your extra. That's why the plan speeds up: the amount going to each target debt grows as debts disappear.
Should I include my mortgage?
Usually not. Debt payoff plans are for consumer debts such as credit cards, store cards, overdrafts, car loans and personal loans. A mortgage's low rate and long term make it a poor target, though some people include it as a final step.
What if my payments don't cover the interest?
Then the debts never shrink and the calculator says so. Increasing your payment, moving a card balance to a 0% balance-transfer card, or talking to a free debt advice service can help.
Where can I get free help with debt?
In the UK, free debt advice is available from MoneyHelper, StepChange and Citizens Advice. In the US, look for a nonprofit credit counseling agency accredited by the NFCC or FCAA. Be wary of companies that charge large fees up front.
About Debt Payoff Calculator
This debt payoff calculator builds a plan to clear all your debts and compares the two best-known methods, the debt avalanche and the debt snowball, side by side. List your credit cards, loans and other debts with their balances, rates and minimum payments, add what you can pay on top, and see your debt-free date and the total interest for each plan.
It also shows what happens if you pay only the minimums, so you can see how much an extra payment saves, and lists the month each debt will be cleared. Freed-up minimums roll into the next debt automatically, as the methods require.
The plan assumes rates and minimum payments stay the same and no new debt is added. Your numbers stay in your browser.