How to use this debt payoff calculator
Grab your latest statements. For each card or loan you need three numbers: the balance, the interest rate (APR) and the minimum payment. The plan updates as you type, so you can try different budgets and methods in seconds.
- Enter each debt. Fill in Debt 1 balance, Debt 1 rate and Debt 1 minimum, then the same for Debts 2 and 3. Got more? Open "More options" for Debts 4 and 5. Any debt left at a 0 balance is ignored.
- Set your "Extra per month". This is what you can pay on top of all the minimums combined. Even a modest amount makes a big difference once it starts rolling from one debt to the next.
- Choose a payoff method. Avalanche targets the highest rate first; snowball targets the smallest balance first. The results compare both, plus what happens if you only ever pay the minimums.
- Check the payoff order table to see when each debt is cleared and how much interest it costs you along the way. The hint under each minimum shows how much of that payment goes to interest in the first month.
How the payoff plan is calculated
Monthly budget = all minimums + extra · Interest each month = balance × APR ÷ 12 Each month: interest is added to every debt, every debt gets its minimum, and whatever is left of the budget goes to the current target debt.
The calculator runs your debts forward one month at a time. Your total monthly payment stays fixed for the whole plan. When the target debt reaches zero, its minimum payment is freed up and joins the extra amount on the next debt in line. If a debt is cleared partway through a month, the leftover goes straight to the next target that same month. This "rollover" is why the payment you throw at each debt gets bigger as you go.
Minimum payments are treated as fixed amounts. Real credit card minimums usually shrink as the balance falls (often a percentage of the balance plus interest), which makes the minimums-only path even slower than shown here.
Worked example
Say you have three debts: a credit card with $4,800 at 24.99% (minimum $145), a car loan with $11,200 at 7.5% (repayment $320) and a store card with $2,300 at 18% (minimum $65). Your minimums add up to $530, and you can find an extra $250, so your budget is $780 a month.
In month 1 the credit card charges $4,800 × 0.2499 ÷ 12 = $99.96 in interest. Under the avalanche method it gets its $145 minimum plus the $250 extra, so its balance drops to $4,504.96. The car loan and store card get just their minimums.
Following the avalanche order (credit card, then store card, then car loan), the card is gone in month 15, the store card in month 19 and the car loan in month 27. Total interest: $2,519. The snowball order (store card first) also finishes in month 27 but costs $2,694, $174 more. Its reward is an early win: the store card is cleared in month 8. Paying minimums only would take 57 months and cost $5,908 in interest, so either plan saves about $3,200 to $3,400 and two and a half years.
Avalanche vs snowball: which should you pick?
| Debt avalanche | Debt snowball | |
|---|---|---|
| Target first | Highest interest rate | Smallest balance |
| Total interest | Lowest possible | Same or higher |
| First debt cleared | Can take a while | Usually quickly |
| Best for | Big gaps between rates, high-rate cards | Many small balances, staying motivated |
The avalanche comes out cheaper in practically every case, but the size of the win depends on your debts. When rates are far apart and the high-rate debt is large, the difference can run into thousands. When your rates are similar, or your smallest balance also has the highest rate, the two plans are nearly or exactly the same. In the example above the avalanche saves $174 over 27 months, and the snowball delivers its first paid-off debt seven months sooner.
A middle path works too: start with one small balance you can clear in a few months for a quick win, then switch to the avalanche for the rest. The best plan is the one you will actually follow to the end.
The extra amount does the heavy lifting. In the example, rolling minimums alone (no extra) takes 46 months and $5,603 in interest. Adding $100 a month cuts that to 35 months and $3,640; adding $500 gets you out in 20 months for $1,733. Try your own numbers with the slider.
Common mistakes that slow down debt payoff
- Paying a little extra on everything. Spreading your extra money evenly feels fair, but it delays every payoff. Concentrating it on one debt at a time is what creates the rollover effect.
- Using new credit while paying off old. New spending on a card you are clearing quietly resets the plan. If you can, take the card out of your wallet and remove it from online stores until the balance is gone.
- Having no emergency buffer. Without a small cash cushion, one car repair goes straight back on a card. Many people keep a starter fund of a few hundred to a thousand dollars before going all in. The savings goal calculator can plan that cushion.
- Ignoring promotional rate end dates. A 0% balance transfer is great until it expires. Know the date and the rate it reverts to, and aim to clear it before then.
- Forgetting about fees. Balance transfer fees, annual fees and late fees all add to what you owe. Include them in the balance if they will be charged.
Other ways to speed things up
If one debt carries a very high rate, moving it to something cheaper can beat any payoff order. A balance transfer card or a debt consolidation loan replaces several high-rate debts with one lower rate. Check the true cost, fees included, with the personal loan calculator, then enter the new loan here to see your updated debt-free date. Working on a single card? The credit card payoff calculator goes deeper on one balance.
Planning to borrow for a home or car later? Clearing debt also lowers your debt-to-income ratio, one of the first numbers a lender checks. See where you stand with the debt-to-income calculator, and how your payments change as each debt disappears.
The terms vary a little by country. In the US you will see APR on every statement. In Australia, credit cards quote a purchase rate, and loans also show a comparison rate that includes most fees. In the UK, cards show a representative APR. Whichever you have, enter the annual rate you are actually being charged on the balance.
Frequently asked questions
Is the debt avalanche or the debt snowball better?
What does "payment rollover" mean?
Why does the calculator say a debt is "growing"?
Should I include my mortgage in a debt payoff plan?
Does a 0% balance transfer change the order?
Are my numbers stored anywhere?
This calculator gives estimates for education and planning. It is not financial advice, and your lender's figures may differ. See how we calculate.