Debt Payoff Calculator
Create a debt-free plan. Calculate payoff timeline and interest savings using snowball or avalanche method. See how extra payments accelerate your progress.
How This Calculator Works
Calculation methodology and assumptions
This calculator simulates month-by-month debt repayment. Each month, interest accrues on the remaining balance (APR/12), and your payment (minimum + extra) reduces the principal. The snowball method pays smallest balances first for psychological wins. The avalanche method targets highest interest rates first to minimize total interest. Both methods are mathematically modeled here.
Frequently Asked Questions
What is the debt snowball method?
The snowball method pays minimum on all debts and puts extra money toward the smallest balance. When it is paid off, you "snowball" that payment into the next smallest debt. This method provides psychological wins that keep you motivated.
What is the debt avalanche method?
The avalanche method targets the highest interest rate debt first, regardless of balance size. Mathematically, this saves the most money in interest over time, though it may take longer to see debts fully eliminated.
How much extra should I pay toward debt?
Any extra amount helps. Even $50-100/month extra can save thousands in interest and years of payments. Use this calculator to see the exact impact of different extra payment amounts.