Debt Payoff Calculator
Amount you can put towards debt above the minimums (enter 0 to compare minimums only)
Enter your debts and see a side-by-side comparison of the avalanche method (highest interest rate first, saves the most money) and the snowball method (smallest balance first, fastest psychological wins). Add up to 10 debts - credit cards, personal loans, car loans, student loans - and see exactly how long it takes to pay off all debts with each strategy, how much interest you pay in total, and how much extra payments above the minimum save you.
How to use this tool
- 1Enter the details for each debt: a name so you can identify it, the current balance, the annual percentage rate (APR), and the minimum monthly payment. Click Add another debt to add more (up to 10).
- 2Enter your extra monthly payment budget - the amount you can afford to put towards debt each month above all minimum payments. Enter 0 to compare minimum-payments-only.
- 3Read the Avalanche result: this method directs extra payments to the highest APR debt first. It minimises total interest paid.
- 4Read the Snowball result: this method directs extra payments to the lowest balance debt first. It clears individual debts faster, which many people find motivating.
- 5Compare both methods to the minimum-only baseline to see how much time and interest your extra payments save.
- 6Use the Payoff order shown under each method to plan which debt will be cleared first, second, and so on.
Example
Credit card: $4,200, 22.9% APR, $105 minimum. Car loan: $8,500, 6.9% APR, $210 minimum. Personal loan: $3,000, 14.5% APR, $80 minimum. Extra payment: $300/month. Avalanche order: credit card first (highest APR), then personal loan, then car. Pays off in 28 months with $1,840 total interest. Snowball order: personal loan first (smallest balance), then credit card, then car. Pays off in 29 months with $2,090 total interest. Avalanche saves $250 in interest. Minimum only would take 62 months and cost $5,300 in interest.
Card A: $2,500 balance, 18.9% APR, $63 minimum. Card B: $6,000 balance, 24.9% APR, $150 minimum. No extra payment. Avalanche and snowball differ here: avalanche attacks Card B first (higher rate); snowball attacks Card A first (lower balance). Minimum only takes 48 months and $3,100 interest. Even $100 extra per month reduces payoff to 31 months and saves over $1,400 in interest - showing the dramatic impact of modest extra payments.
Common use cases
- Credit card holders with multiple cards trying to decide which to pay down first
- People with a mix of high-rate credit card debt and lower-rate loans (car, student) who need to prioritise
- Anyone setting a household budget and wanting to know how much extra debt repayment they can afford and what it saves
- Financial planners or counsellors creating a debt elimination plan for a client
- People deciding whether to consolidate debt - comparing the payoff plan with current debts versus a consolidation loan
Common mistakes
- Entering the credit limit instead of the current balance - always use the amount you currently owe, not the card limit
- Using the stated interest rate instead of the APR - the APR includes fees and shows the true annual cost; it is typically higher than the nominal rate
- Setting the minimum payment lower than the actual minimum shown on your statement - if the minimum does not cover the monthly interest, the debt grows and the calculator will show it never gets paid off
- Forgetting that minimum payments on credit cards typically decrease as the balance falls - this calculator uses a fixed minimum for simplicity; real payoff time may differ slightly
Frequently asked questions
What is the avalanche method?
The avalanche method directs all extra debt payments to the debt with the highest annual percentage rate (APR) while maintaining minimum payments on all other debts. Once the highest-APR debt is cleared, you roll its payment into the next highest-APR debt. This method minimises the total interest paid across all debts.
What is the snowball method?
The snowball method directs extra payments to the debt with the lowest current balance while maintaining minimums on all others. Once the smallest debt is cleared, you roll that payment into the next smallest. This creates a series of quick wins that can be psychologically motivating. It typically costs slightly more in total interest than the avalanche method.
Which method should I use?
Mathematically, avalanche always saves more money. But behavioural research suggests that the snowball method helps some people stay motivated because they eliminate individual debts faster. If you are disciplined and focused on minimising cost, use avalanche. If you have struggled to stick to debt repayment plans before, the quick wins from snowball may help you stay on track.
What APR should I enter?
Use the APR (Annual Percentage Rate) shown on your statement or credit agreement, not the monthly rate or nominal rate. For credit cards, the APR is typically between 15% and 30%. For personal loans and car loans, it is typically 5-20%. If your card has different rates for purchases, cash advances, and transfers, use the rate that applies to your current balance.
What if my minimum payment is too low to cover the interest?
If the minimum payment is lower than the monthly interest charge, the balance grows every month and the debt can never be paid off at that rate. The calculator will warn you if this is the case. Contact your lender to increase the minimum payment, or add sufficient extra payment to ensure the balance is actually reducing.
Is my data saved?
No. All calculations run in your browser. Your debt amounts, APRs, and payments are never sent to a server or stored anywhere.
Can I include a mortgage?
Yes, you can enter a mortgage as one of the debts. However, this calculator uses a simplified model and does not account for lender restrictions on overpayment, early repayment charges, or the tax deductibility of mortgage interest in some jurisdictions. For a detailed mortgage payoff analysis, use the Loan Amortization Schedule tool instead.
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