About the Debt Payoff Calculator
This debt payoff calculator shows when you will be debt-free and how much interest you will pay across all your debts. You pay the minimum on every debt and put every extra dollar toward one priority debt; when it is gone, its payment rolls over to the next. Compare the debt avalanche (highest APR first) with the debt snowball (smallest balance first, made popular by Dave Ramsey) and with paying only the minimums.
How to use
- Enter each debtโs name, balance, APR and minimum monthly payment. Use Add debt for up to 10 debts.
- Enter the total amount you can put toward debt each month; it must cover all minimum payments.
- Choose Avalanche or Snowball to see your debt-free date, total interest and total paid.
- Check the comparison table and the payoff order for each debt.
Debt avalanche vs debt snowball
| Method | Pay extra on | Pros |
|---|---|---|
| Avalanche | Highest APR | Lowest total interest, usually the fastest |
| Snowball | Smallest balance | Debts disappear sooner, which helps you stick with the plan |
Example: a credit card of $8,000 at 24% ($200 minimum), a personal loan of $3,000 at 11% ($100) and a car loan of $14,000 at 7% ($300), paying $1,000 a month. Both methods take 29 months, but the avalanche costs about $3,384.53 in interest and the snowball $3,802.02. Paying only the minimums would take 82 months and cost about $11,169 in interest.
Why the rollover matters
Both methods work because you keep paying the same total every month. When one debt is paid off, its minimum payment is added to the next one, so the payment on each following debt grows like a snowball. Lowering your monthly total after each payoff removes most of the benefit.
Assumptions
- Interest is charged monthly as balance ร APR รท 12. Credit cards usually compute interest on the average daily balance, so real figures can differ slightly.
- For installment loans, enter the fixed monthly payment as the minimum.
- Promotional 0% balances: enter 0% APR, but remember the rate jumps when the promotion ends.
- No new charges are assumed. Keep cards paid in full while you pay down old balances.
FAQ
Which is better, the snowball or the avalanche?
Mathematically the avalanche always costs the same or less interest. The snowball gives faster wins, which many people find easier to stick with. If the difference shown is small, pick the method you will keep doing.
How long will it take to pay off my credit card with minimum payments?
Enter only that card and set the monthly payment equal to the minimum. A $8,000 balance at 24% with a fixed $200 payment takes 82 months (6 years 10 months) and costs about $8,255 in interest.
Why does it say 100+ years?
If a payment is smaller than the monthly interest, the balance never shrinks. Increase your total monthly payment.
Should I consolidate my debts?
Replace the debts you would consolidate with one line for the new loan (amount, APR and payment) and compare the total interest. Include balance transfer or origination fees.