Debt Payoff Calculator

How the Debt Payoff Calculator Works

Enter each of your debts with its current balance, interest rate (APR), and minimum monthly payment. Then set an extra monthly amount you can put toward debt beyond the minimums. The calculator instantly shows your debt-free date, total interest paid, and a month-by-month payment schedule for both the snowball and avalanche strategies.

What Is the Debt Snowball Method?

The debt snowball method focuses on paying off your smallest balance first while making minimum payments on everything else. Once the smallest debt is gone, you roll that payment into the next smallest. This approach builds psychological momentum — each quick win motivates you to keep going. It's the strategy Dave Ramsey recommends and works best for people who need visible progress to stay on track.

What Is the Debt Avalanche Method?

The debt avalanche method targets the debt with the highest interest rate first, regardless of balance. You make minimum payments on all other debts and throw every extra dollar at the most expensive one. Mathematically, this saves you the most money in interest over time. It's the optimal strategy if you're motivated by numbers rather than quick wins.

Which Method Should You Choose?

If you have debts with very different interest rates, the avalanche method can save you hundreds or thousands of dollars. If your rates are similar, the difference is small — pick whichever keeps you motivated. Many financial experts suggest starting with the snowball to build habits, then switching to avalanche once you have momentum. Use the calculator above to compare both methods with your actual numbers.

More Calculators

• Credit Card Payoff Calculator — See the true cost of minimum payments and how extra payments help.
• Mortgage Payoff Calculator — See how extra mortgage payments save you thousands.