Debt Payoff Calculator

Plan your path to debt-free. Compare the avalanche (highest rate first) and snowball (smallest balance first) methods.

By the CalculateBright team · Updated · How we calculate

Strategy
Debt 1
Debt 2
Debt 3
Debt 4
  

    How to use the Debt Payoff calculator

    1. Enter your numbers. Fill in strategy, extra payment / month.
    2. Enter debt 1 details. Fill in credit card balance, apr, minimum payment.
    3. Enter debt 2 details. Fill in car loan balance, apr, minimum payment.
    4. Enter debt 3 details. Fill in student loan balance, apr, minimum payment.
    5. Enter debt 4 details. Fill in other debt balance, apr, minimum payment.
    6. Read your results. Results update instantly. The headline shows the debt-free in; the breakdown and table below show the details.

    Avalanche vs. snowball

    Both methods pay the minimum on every debt and put every extra dollar toward one target debt. When a debt is paid off, its payment rolls to the next target.

    • Avalanche targets the highest APR first. It always costs the least interest.
    • Snowball targets the smallest balance first. You get quick wins that help many people stay motivated.

    How it’s calculated

    Each month, interest is added to every balance (APR ÷ 12), minimums are paid, and the remaining budget goes to the target debt. The simulation runs until every balance is zero.

    Worked example

    With these inputs (main ones shown): strategyAvalanche (highest APR); extra payment / month$200; credit card balance$4,500; apr24.9%; minimum payment$120; car loan balance$12,000; apr7.5%; minimum payment$290.

    The calculator gives a debt-free in of 4 yr 2 mo (around Dec 2030 using the avalanche). Other results: total interest$5,262, interest saved vs. minimums only$4,566, avalanche interest$5,262, snowball interest$5,262.

    What your results mean

    The debt-free date assumes you keep paying the same total amount every month and roll each paid-off debt’s payment into the next. The avalanche method always costs the least interest; the snowball often finishes the first debt sooner.

    Tips

    • List every debt with its exact APR and minimum payment from your latest statement.
    • Automate the total payment so the plan runs even in busy months.
    • Put windfalls (tax refunds, bonuses) toward the current target debt.

    Frequently asked questions

    What is the debt snowball method?

    You pay minimums on everything and put all extra money toward the smallest balance first. Each payoff frees up cash for the next debt.

    What is the debt avalanche method?

    You target the highest-APR debt first. It minimizes total interest and usually gets you debt-free slightly sooner than the snowball.

    Which method is best?

    Avalanche saves the most money; snowball can be easier to stick with. The difference is often small, so pick the one you’ll follow.

    What if my minimums don’t cover interest?

    The calculator will flag it. You’ll need a larger payment or a lower rate (e.g. consolidation).

    Should I consolidate?

    If you can get a lower APR with a personal loan or 0% transfer, it can help. Compare with the personal loan calculator.

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