Debt Payoff Calculator

Calculate how long it will take to pay off your debts. Compare snowball vs avalanche methods and see your debt-free date.

Extra Monthly Payment
$
Payoff Method
Your Debts

Debt #1

Quick Facts

Avg Credit Card APR
20.7%
As of 2024
Avg Student Loan Rate
5.8%
Federal loans
Avg Auto Loan Rate
7.1%
New car, 60 months
Interest Saved
30-50%
With extra payments

Your Results

Snowball
Debt-Free In
0 months
-
Total Interest Paid
$0
Over payoff period
Total Amount Paid
$0
Principal + Interest

Payoff Order

Order Debt Name Original Balance Paid Off In

Key Takeaways

  • The debt avalanche method saves the most money by targeting highest-interest debt first
  • The debt snowball method provides quick wins by paying off smallest balances first
  • Even $50 extra per month can save thousands in interest and years of payments
  • Most people can become debt-free 2-5 years faster with a strategic payoff plan
  • Stop using credit cards while paying off debt to prevent the balance from growing

What is a Debt Payoff Calculator?

A debt payoff calculator helps you create a strategic plan to eliminate your debts. It calculates how long it will take to become debt-free, how much interest you'll pay, and shows you the optimal order to pay off your debts based on your chosen method.

Whether you're dealing with credit cards, student loans, car payments, or medical bills, this calculator gives you a clear roadmap to financial freedom.

Debt Snowball vs. Debt Avalanche: Which Method is Best?

There are two popular strategies for paying off multiple debts. The best choice depends on your personality and financial situation.

Debt Snowball Method

Pay off debts from smallest balance to largest, regardless of interest rate.

  • Quick wins boost motivation
  • Fewer accounts to manage faster
  • Psychologically rewarding
  • May pay more interest overall

Debt Avalanche Method

Pay off debts from highest interest rate to lowest.

  • Mathematically optimal
  • Saves the most money
  • May take longer to see progress
  • Requires more discipline

How to Use This Calculator

  1. Enter your extra monthly payment - Any amount above minimum payments you can dedicate to debt payoff
  2. Choose your payoff method - Snowball (smallest first) or Avalanche (highest interest first)
  3. Add all your debts - Include name, balance, APR, and minimum payment for each
  4. Click Calculate - See your debt-free date and payoff order

Tips for Faster Debt Payoff

  • Stop adding new debt - Cut up credit cards or freeze them (literally)
  • Build a small emergency fund first - $1,000 prevents new debt from emergencies
  • Increase your income - Side hustles, overtime, or selling items
  • Reduce expenses - Cancel subscriptions, cook at home, negotiate bills
  • Use windfalls wisely - Tax refunds, bonuses, and gifts toward debt
  • Consider balance transfers - 0% APR cards can save interest

Frequently Asked Questions

Even small extra payments make a big difference. For example, adding $100/month to a $10,000 credit card balance at 20% APR can save over $4,000 in interest and pay it off 3+ years faster.

If you need motivation from quick wins, use the snowball method. If you're disciplined and want to save the most money, use the avalanche method. Both work - the best method is the one you'll stick with.

Build a small emergency fund of $1,000-$2,000 first to avoid taking on new debt for emergencies. Then focus intensely on debt payoff. After that, build a full 3-6 month emergency fund.

Focus on one debt at a time while making minimum payments on others. This concentrated approach (whether snowball or avalanche) is more effective than spreading extra payments across all debts equally.