How the debt payoff calculator works
Add each debt with its balance, interest rate, and minimum payment, then enter how much you can pay beyond the minimums. The calculator runs your plan month by month with both methods and shows your debt-free date, total interest, and when each debt is paid off. For a single credit card, or 0% promotional rates, use the credit card payoff calculator.
Example: $33,600 across five debts
| Debt | Balance | Rate | Minimum |
|---|---|---|---|
| Credit card | $6,000 | 24% | $180 |
| Store card | $2,200 | 29% | $70 |
| Car loan | $9,500 | 7.5% | $300 |
| Student loan | $15,000 | 5.5% | $180 |
| Medical bill | $900 | 0% | $50 |
Paying only the $780 in minimums, and letting the total fall as debts are cleared, takes 8 yrs 10 mo and costs $11,024 in interest. Keeping the payment steady and adding extra changes that a lot:
| Extra per month | Avalanche | Interest | Snowball | Interest |
|---|---|---|---|---|
| $0 (minimums roll over) | 4 yrs 7 mo | $8,718 | 4 yrs 7 mo | $8,719 |
| $100 | 3 yrs 10 mo | $6,442 | 3 yrs 10 mo | $6,666 |
| $200 | 3 yrs 4 mo | $5,231 | 3 yrs 4 mo | $5,454 |
| $500 | 2 yrs 5 mo | $3,485 | 2 yrs 6 mo | $3,670 |
With $200 extra, avalanche saves $223 over snowball by paying off the 29% store card first. Snowball clears the medical bill in month 4, compared with month 10 for avalanche's first payoff.
Snowball vs. avalanche
- Avalanche: highest interest rate first. Lowest total cost, best when one debt has a much higher rate.
- Snowball: smallest balance first. Fewer bills sooner, which helps if motivation is the hard part.
The gap between them is usually smaller than people expect, and the extra payment matters far more than the method. Read the full avalanche vs. snowball guide.
Finding money for extra payments
- Build a plan with the budget calculator to find spare cash each month.
- Check your paycheck with the take-home pay calculator; a big tax refund every year means you could get that money in each paycheck instead.
- Compare a lower-rate consolidation loan with the personal loan calculator, including its origination fee.
Frequently asked questions
What is the debt snowball method?
You pay the minimum on every debt and put all extra money toward the smallest balance. When it's gone, its payment rolls into the next-smallest, so the amount you throw at each debt grows like a snowball. Quick wins help many people stay motivated.
What is the debt avalanche method?
You pay the minimum on every debt and put all extra money toward the debt with the highest interest rate, then roll that payment to the next-highest rate. It always costs the least interest, though your first payoff may take longer.
Is snowball or avalanche better?
Avalanche saves the most money; snowball gives faster early wins. When your highest-rate debt is also your smallest, they're the same plan. If the interest difference the calculator shows is small, choose the method you'll stick with.
Should I include my mortgage?
Usually not. Payoff plans focus on high-interest consumer debt like credit cards, personal loans, and car loans. A mortgage's low rate and long term make extra payments there a lower priority than clearing expensive debt and building an emergency fund.
What does "minimums roll over" mean?
When a debt is paid off, you keep paying the same total each month and move its old minimum to the next debt. Even with no extra money, rolling minimums over is much faster than letting your total payment shrink as debts disappear.
What if a minimum payment doesn't cover the interest?
That balance grows each month until extra money reaches it. The calculator flags these debts. Ask the lender about a hardship plan, or consider a lower-rate consolidation loan or balance transfer.
This guide is for general education and is not financial, tax, or legal advice. See our disclaimer.