Debt Payoff Calculator
Calculate how long it takes to pay off your debt using the avalanche or snowball method. Compare strategies and total interest paid.
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What is Debt Payoff Calculator?
The Debt Payoff Calculator shows how long it will take to become debt-free and how much total interest you will pay. It supports both the avalanche method (highest interest rate first) and the snowball method (lowest balance first), and lets you add an extra monthly payment to speed things up.
How to use
- 1 Enter the name, balance, interest rate, and minimum payment for each debt.
- 2 Click Add debt to include additional debts such as credit cards, car loans, or student loans.
- 3 Enter any extra monthly payment amount you can put toward debt.
- 4 Choose between the Avalanche strategy (saves the most interest) or Snowball strategy (builds momentum with quick wins).
- 5 Review the payoff timeline, total amount paid, and total interest charged.
Formula
Example calculation
With a $3,000 credit card at 20% and an $8,000 car loan at 7%, paying minimums plus $100 extra using the avalanche method saves roughly $400 in interest and cuts about 8 months off the payoff timeline compared to minimums only.
Frequently asked questions
Which is better — avalanche or snowball?
Avalanche pays less total interest because you target the highest-rate debt first. Snowball pays off the smallest balance first, which provides quicker psychological wins. Both work; choose the one you are more likely to stick with.
How much does an extra monthly payment help?
Even a small extra payment makes a significant difference because it reduces principal faster, which lowers the interest charged the following month. Use this calculator to see the exact impact of different extra payment amounts.
What is the minimum payment on a credit card?
Most credit card issuers require a minimum of 1-3% of the outstanding balance or a flat minimum (often $25-$35), whichever is higher. Paying only the minimum can take decades to clear a large balance.
Should I pay off debt or invest?
A common rule of thumb is to pay off high-interest debt (above 6-7%) before investing, since those rates typically exceed long-term investment returns. Always maintain an emergency fund regardless.
Can I enter more than two debts?
Yes. Click Add debt as many times as needed to include all your debts. The calculator handles any number of debts and applies the chosen strategy across all of them.