How the debt payoff calculator works
Enter each debt’s balance, APR and minimum payment, then how much extra you can pay each month. Every month the calculator adds that month’s interest to each debt, pays every minimum, and puts the extra toward one debt. When a debt is paid off, its minimum joins the extra for the next one, so you keep paying the same total each month until you’re debt-free.
Snowball vs. avalanche
Both methods pay the same total each month. They differ in which debt gets the extra first. The avalanche method goes to the highest interest rate, which costs the least in interest over time. The snowball method goes to the smallest balance, so you pay off whole debts sooner, which many people find easier to stick with. The calculator shows what the other method would cost, so you can see the difference for your own debts. The snowball vs. avalanche guide walks through an example, and the debt snowball and debt avalanche calculators each focus on one method.
Finding the money for extra payments
Extra payments usually come from a budget: deciding ahead of time what each part of your paycheck is for, so what’s left over can go to debt instead of disappearing. With an envelope budget, your debt payment gets its own envelope like rent or groceries, and you fill it before you spend on anything else.
Questions
What should I put as the minimum payment?
The minimum on your latest statement. For loans, that’s your regular monthly payment. Credit card minimums shrink as the balance does, so using today’s minimum for a card is a little conservative.
Does it count new purchases on my cards?
No. It assumes you stop adding to these debts. New charges push your debt-free date back.
Why does my plan never finish?
At least one debt’s payment is smaller than the interest it adds each month, so its balance keeps growing. Raise that payment or the extra amount.
Is avalanche always better?
It always costs the same or less in interest. Snowball can still be the better plan for you if paying off whole debts sooner keeps you going.
Estimates only, using monthly compounding at your APR divided by 12. Your lender’s numbers may differ with daily interest, fees or rate changes. This calculator isn’t financial advice.