Debt Payoff Calculator

How to Use This Calculator

1. Enter total debt balance — The total amount you owe across all debts.
2. Enter the average interest rate — Weighted average rate across your debts.
3. Enter your monthly payment — The minimum or your planned payment.
4. Enter extra monthly payment — Any additional amount you can put toward debt.
5. Click Calculate — See your payoff timeline, total interest, and savings from extra payments.

Avalanche vs Snowball Method

Debt Avalanche (Best for Saving Money)

Pay minimums on all debts, then put all extra money toward the highest-interest debt first. Once that's paid off, move to the next highest rate.

• ✅ Saves the most money in interest
• ✅ Fastest overall payoff mathematically
• ❌ May take longer to see your first debt eliminated

Debt Snowball (Best for Motivation)

Pay minimums on all debts, then put all extra money toward the smallest balance first. Once that's paid off, move to the next smallest.

• ✅ Quick wins build motivation
• ✅ Reduces the number of debts faster
• ❌ Costs more in total interest paid

Which Method Should You Use?

Research shows the snowball method is more likely to be completed because motivation matters. But if you have high-interest credit card debt (20%+), the avalanche method can save you thousands. Best approach: Use avalanche for high-interest debts (>10%), then switch to snowball for the remaining lower-rate debts.

How Extra Payments Accelerate Payoff

Even small extra payments make a huge difference due to compound interest working against you:

• $10K at 18% APR, $200/mo minimum: 94 months to pay off, $8,806 in interest
• Same debt, $250/mo ($50 extra): 62 months, $5,580 in interest — save $3,226
• Same debt, $300/mo ($100 extra): 46 months, $3,636 in interest — save $5,170

That extra $50/month saves you $3,226 and 32 months of payments. The math is powerful.

Frequently Asked Questions