Debt Payoff Calculator
See how quickly you can pay off multiple debts using the avalanche (highest rate first) or snowball (smallest balance first) strategy, and how much interest you save.
Did this tool work for you?
How to use this calculator
- 1
Enter the balance and interest rate for up to three debts.
- 2
Enter any extra amount you can put toward debt each month, beyond the minimums.
- 3
Choose your strategy: Avalanche (highest rate first) minimises total interest; Snowball (smallest balance first) builds momentum with quick wins.
- 4
Review months to payoff and interest saved compared to minimum-only payments.
Frequently asked questions
Which is better: avalanche or snowball?
Mathematically, avalanche saves the most money. Psychologically, snowball can be more motivating because you eliminate debts faster. Research shows both work — the best strategy is the one you stick to. If motivation is your challenge, start with snowball.
What counts as the "minimum payment"?
This calculator estimates minimums as roughly 1% of the balance plus the monthly interest charge, with a $25 floor — a common credit card formula. Your actual minimums may differ; check your statements.
How much extra should I pay each month?
Even an extra $50–100/month can shave years off your payoff timeline. On a $5,000 / 20% credit card balance, paying $150/month (vs the ~$100 minimum) cuts payoff from 10+ years to about 4 years and saves over $4,000 in interest.
Should I invest or pay off debt first?
Pay off high-interest debt (above 7–8%) before investing in non-tax-advantaged accounts — the guaranteed return of eliminating 20% APR debt beats most investment returns. Always capture employer 401k matching first (that's a 50–100% instant return), then aggressively pay down high-rate debt.
Paying off multiple debts strategically
The debt avalanche method
List all debts by interest rate, highest first. Pay minimums on all, then throw every extra dollar at the highest-rate debt. Once it's gone, roll that full payment into the next debt. This method minimizes total interest paid over time. It is optimal for anyone who can stay motivated without quick wins.
The debt snowball method
List debts by balance, smallest first. Pay minimums everywhere, then attack the smallest balance aggressively. When it's cleared, roll the payment to the next smallest. This creates fast early victories that boost motivation. Studies show the snowball's psychological benefit leads many people to pay off debt faster in practice — even if the interest cost is slightly higher.
Accelerating payoff: practical tactics
The single biggest lever is increasing income temporarily: freelance work, overtime, selling unused items. Apply every windfall (tax refund, bonus, gift money) directly to your target debt. Automate the extra payment so it happens before you can spend it. Even one extra payment per year on a 5-year debt plan removes several months from the timeline.
Learn more from an authoritative source:
InvestopediaCompound Interest Calculator
Calculate how your investment or savings grows over time with the power of compounding.
Simple Interest Calculator
Calculate simple interest, total amount, and interest earned using principal, rate, and time.
ROI Calculator
Calculate return on investment, net profit, and annualised ROI for any investment.
CAGR Calculator
Calculate Compound Annual Growth Rate (CAGR) for investments, revenue, or any metric over time.
Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →