Debt payoff calculator

How to use the debt payoff calculator

1. List every debt. Add credit cards, store cards, car loans, student loans, personal loans and medical bills. Use the balance and APR from your latest statement.
2. Enter each minimum payment. For fixed loans, use your regular monthly payment.
3. Add an extra payment. This is money on top of your minimums, from your budget, a side job or cuts you've made. Even $25 a month moves your date.
4. Pick a method. The snowball targets the smallest balance first. The avalanche targets the highest interest rate first.
5. Compare the results. The table shows time, interest and total paid for both methods and for paying only the minimums.
6. Save your plan. Copy the summary into a note or print it. Nothing is stored, so keep a copy if you want it later.

Debt snowball vs avalanche: which should you pick?

Both methods pay the minimum on every debt and send extra money to one target. The difference is the order. Investopedia explains the debt avalanche as paying the highest rate first, which usually costs the least interest. The snowball starts with the smallest balance, so you clear a debt sooner and see progress fast.

For a deeper look at the trade-offs, read our full guide to debt snowball vs avalanche. If you're starting from scratch, our guide on how to get out of debt walks through the first steps.

How the payoff math works

Each month, the calculator adds interest to every balance using its APR divided by 12. It pays the minimum on each debt, then puts your extra payment on the target debt. When a debt hits zero, its minimum rolls onto the next target, so your total monthly payment stays the same while the debts shrink. The CFPB explains what APR means on a credit card statement.

Real accounts can differ a little. Many cards charge interest daily, rates can change, and minimum payments often drop as the balance falls. If you keep paying the same amount instead, you'll finish sooner than the minimums-only line shows. The Federal Reserve's consumer credit report lists average card rates if you want to compare yours.

Tips to pay off debt faster

• Stop adding new charges. Paying down a card while still using it slows everything down.
• Ask for a lower rate. A quick call to your card company sometimes works, especially with a good payment record. The CFPB's tips for reducing debt cover more options.
• Keep a small cushion. A starter emergency fund and sinking funds for known costs keep surprises off your cards.
• Budget the extra payment. Give it a line in your budget so it happens every month. Our family budgeting guide shows how.
• Celebrate each payoff. Mark each debt off on paper. It keeps you going.

Paying off debt is easier when it's tied to a bigger goal, like a home, a trip or simply less stress. For more on what is financial planning and setting goals you'll stick with, see our goal-setting guide.

Track your plan in a spreadsheet

A calculator shows the plan. A tracker helps you follow it month after month. Our free guide to building a debt payoff planner in Excel shows the formulas, or you can skip the setup with the Debt Payoff Planner spreadsheet ($6.99), which works in Excel and Google Sheets.

Questions, answered

How does this debt payoff calculator work? The debt payoff calculator adds each month's interest to every balance, pays the minimum on every debt, then puts your extra payment on one target debt. When a debt is paid off, its minimum rolls onto the next one. It repeats month by month until every balance is zero and shows your debt-free date and total interest.

What is the debt snowball method? The debt snowball pays off your smallest balance first while you make minimum payments on everything else. When the smallest debt is gone, you roll its payment onto the next smallest. Quick early wins help many people stay motivated, even though it can cost a bit more interest than the avalanche.

What is the debt avalanche method? The debt avalanche targets the debt with the highest interest rate first, while you pay minimums on the rest. Once it's paid off, the freed-up money moves to the next highest rate. Mathematically it usually saves the most interest and time, but the first payoff can take longer if that debt is large.

Is the snowball or avalanche method better? The avalanche usually saves more money, and the snowball usually gives faster early wins. The best method is the one you'll keep doing for months or years. Use the comparison table in the calculator to see the real difference for your own debts, which is often smaller than people expect.

Are my numbers saved or sent anywhere? No. The debt payoff calculator runs entirely in your browser. Your balances, rates and payments are never sent to us, saved in a link or stored on your device. When you close the page, they're gone. Use Copy summary or Print if you want to keep your plan.

What APR should I enter for each debt? Use the annual percentage rate shown on your latest statement or in your online account. Credit cards often list separate rates for purchases and cash advances, so use the one that applies to most of your balance. For a 0% promotional rate, enter 0 but note when the promotion ends.

What if my minimum payment doesn't cover the interest? Then the balance grows each month instead of shrinking. The calculator warns you when that happens. Call the lender and ask about a lower rate or a hardship plan, and consider putting your extra payment on that debt first. A nonprofit credit counselor can also help you review your options.

How much extra should I put toward debt each month? Start with an amount you can keep paying every month, even a small one. Look at your budget for money freed up from cutting a subscription, eating out less or a side job. Try a few amounts in the calculator to see how much sooner you'd be debt-free, then pick one that feels realistic.

Should I pay off debt or build an emergency fund first? Many people keep a small starter emergency fund while paying down debt, so a surprise bill doesn't land on a credit card. Once high-interest debt is paid off, they grow the fund to several months of expenses. The right balance depends on how steady your income is.

Can I include a car loan, student loan or medical bill? Yes. Add any debt with a balance, an interest rate and a monthly payment. Fixed loans like car loans usually have a set payment, and the calculator treats it as the minimum. For interest-free medical bills, enter 0% APR. Leave out your mortgage unless you want it in the plan.

Why is my real payoff date different from the calculator? The calculator uses a simple monthly interest estimate and assumes you don't add new charges. Real accounts may compound daily, change rates or add fees, and minimum payments on cards often fall as the balance drops. Treat the result as a plan, then check your statements every month and adjust.

Make the plan stick

Track every payment to zero

Your payoff date only helps if you check in each month. The Debt Payoff Planner spreadsheet shows the payoff month for every debt and your debt-free date, and updates as you go.

• Up to 10 debts, snowball or avalanche switch
• Month-by-month payoff schedule (up to 30 years)
• Interest saved vs. minimums, in Excel and Google Sheets

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