Debt Payoff Calculator
Plan how to clear multiple debts — choose the avalanche or snowball strategy and see your debt-free date.
Your Debts
$570 covers the minimums · $380 extra goes at the focus debt
highest interest rate first — the mathematically cheapest order.
Debt-Free In
2 yr 10 mo
Avalanche method · $950 a month
Clearing $27,500 of debt costs you $4,568 in interest with the avalanche method — paying highest interest rate first — the mathematically cheapest order.
Total Interest
$4,568
Across all debts, until debt-free
Total Paid
$32,068
Balances + all interest
Starting Debt
$27,500
3 debts
Monthly Budget
$950
Minimums: $570
Payoff Order — Avalanche Method
| # | Debt | Cleared After | Interest Paid |
|---|---|---|---|
| 1 | Credit Card | 1 yr 8 mo | $1,967 |
| 2 | Personal Loan | 2 years | $573 |
| 3 | Car Loan | 2 yr 10 mo | $2,027 |
Debt Elimination Timeline
Your total debt falling month by month with the avalanche method — debt-free by month 34.
Avalanche vs Snowball
avalanche
Selected- Debt-free in
- 2 yr 10 mo
- Total interest
- $4,568
- First debt cleared
- Credit Card
snowball
- Debt-free in
- 2 yr 11 mo
- Total interest
- $5,247
- First debt cleared
- Personal Loan
Avalanche saves $679 more in interest. Snowball clears your first debt sooner — a motivational head start. Pick the one you'll actually stick with.
How to use this calculator
- List each debt — its name, current balance, interest rate (APR), and minimum monthly payment. Add or remove rows as needed.
- Enter your total monthly budget — everything you can put toward debt each month. It must at least cover the sum of every minimum payment.
- Pick a strategy — avalanche (cheapest) or snowball (fastest first win).
The calculator shows your debt-free date, total interest, the order debts are cleared, a month-by-month elimination chart, and a side-by-side comparison of both methods.
How it works
Every month, the calculator does the same thing a disciplined repayment plan does:
- Pays every minimum on every open debt — this keeps all accounts current.
- Funnels the leftover budget (your budget minus the minimums) entirely at one focus debt.
- Rolls the payment forward — when the focus debt is cleared, its whole payment joins the next focus debt. This is the “debt stacking” effect, and it is why later debts clear far faster than the first.
The only difference between the two strategies is which debt is the focus:
- Avalanche — highest interest rate first. Mathematically the cheapest, because the most expensive balance is always shrinking fastest.
- Snowball — smallest balance first. Usually costs a little more interest, but clears a debt quickly, and that visible progress is a powerful motivator.
The calculator runs both and shows them side by side, so you can weigh the avalanche’s interest saving against the snowball’s psychological head start.
The limits of an estimate
This is a projection that assumes you pay the same total budget every month and that interest rates do not change. It does not model late fees, promotional rates expiring, or new borrowing. Use it to compare strategies and set a realistic debt-free target — then keep the plan steady, because consistency is what actually clears debt.
Frequently Asked Questions
What is the debt avalanche method? ▾
The avalanche method pays off your debts in order of interest rate — highest APR first. You make the minimum payment on every debt, then put all of your spare money toward the single highest-rate debt until it is gone, then roll that freed-up payment onto the next-highest rate. Because interest is always charged on the costliest balance first, avalanche clears your debt for the least total interest. It is the mathematically cheapest order.
What is the debt snowball method? ▾
The snowball method pays off your debts in order of balance — smallest first. You pay every minimum, then attack the smallest balance with all your spare money, then roll that payment onto the next-smallest. It usually costs slightly more interest than avalanche, but it clears your first debt fast — and that quick, visible win is what keeps many people motivated to stay the course. The best method is the one you will actually stick with.
Which method saves more money — avalanche or snowball? ▾
Avalanche always costs the same or less in total interest, because it always attacks the highest-rate debt first. Snowball can cost a little more, since it may leave a high-rate balance untouched while a smaller, cheaper one is cleared. The gap is often modest — a few hundred dollars on typical balances. This calculator shows both side by side so you can see the exact difference for your debts and decide whether the avalanche's savings outweigh the snowball's motivational head start.
How do I find my minimum payments? ▾
Each debt's minimum payment is shown on its monthly statement. For credit cards it is usually a small percentage of the balance (often 1–3%) or a fixed floor, whichever is larger; for loans it is the fixed monthly payment in your agreement. Enter each debt's real minimum here — your total monthly budget must at least cover the sum of them. Anything you budget above that total becomes the 'extra' that the chosen strategy funnels at one focus debt.
What is debt stacking? ▾
Debt stacking is another name for the rolling-payment idea behind both the avalanche and snowball methods: once a debt is cleared, its whole payment — minimum plus extra — is added on top of what you were already paying the next debt. Each payoff makes the next one faster, so the effort 'stacks'. This calculator models that rolling effect for whichever order you choose, which is why the later debts clear much faster than the first.