Finance
Debt Payoff Planner
Enter up to four debts and an extra monthly repayment budget to see which debt to attack first and when you could be debt-free.
Inputs
Results
Useful next checks
- Compare a few scenarios before making a decision.
- Check rates, fees, tax, and timing outside the estimate.
- Use the explanation below to understand the formula.
Intro
Use this debt payoff planner to compare avalanche and snowball repayment strategies. Enter up to four debts with balances, APRs, and minimum payments, then add any extra monthly repayment budget.
What this debt payoff planner does
The calculator estimates:
- Debt-free time.
- Total interest paid.
- Which debt to attack first.
- How avalanche compares with snowball.
- The order debts may be cleared.
How it works
The calculator keeps your total repayment budget steady. It pays minimums on active debts, sends the extra money to the current target, then rolls freed-up minimum payments into the next target when a debt is cleared.
The avalanche method targets the highest APR first. The snowball method targets the smallest balance first.
Example calculation
Suppose you have a credit card, a personal loan, and a store card. The avalanche method may target the store card first if it has the highest APR, even if it is not the smallest balance.
The snowball method may target the smallest balance first. That can create quicker early wins, but it may cost more interest if higher-rate debts are left for later.
How to use the result
Use the result to choose a repayment order and a monthly budget you can sustain. Try a few extra-payment amounts to see how much faster the debt-free date moves.
For a single card, use the Credit Card Repayment Calculator. For fixed loans, compare with the Loan Repayment Calculator.
Assumptions and limitations
- Version one supports up to four debts.
- APR is converted into an approximate monthly interest rate.
- Minimum payments are treated as fixed amounts.
- The calculator does not include fees, payment holidays, promotional rates, or new borrowing.
- It is a planning estimate, not debt advice.
FAQs
- Which strategy saves the most interest? Avalanche usually saves the most interest because it attacks the highest APR first.
- Why use snowball? Snowball can be motivating because smaller debts disappear sooner.
- What if I cannot afford the minimums? Speak with your lenders or a qualified debt charity before relying on a payoff plan.
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Frequently asked questions
What is the avalanche method?
The avalanche method targets the highest APR debt first while keeping minimum payments going on the rest.
What is the snowball method?
The snowball method targets the smallest balance first, which may feel motivating but can cost more interest.
Can I add more than four debts?
Version one supports four debts in the shared form. Combine smaller debts or run a second scenario if needed.