Debt Payoff Calculator

How to use this calculator

1. Enter or choose your debts (one per line: balance, APR %, minimum payment).
2. Enter or choose total you can pay each month.
3. Enter or choose pay extra towards.
4. The debt-free in updates as you type. Use Copy result or Share to keep it.

Method

Each month: add Balance × APR ÷ 12 to every debt; pay each debt its minimum; put the rest of the budget on the target debt (highest APR for avalanche, smallest balance for snowball), moving to the next target as each is cleared

Budget

total monthly amount for all debts

Minimum

each debt’s required monthly payment

Target

the debt receiving the extra payment

Worked example

1. Month 1: interest 10 on A and 20 on B. Minimums of 20 each, and the other 500 goes to B (24%): A 990, B 500.
2. Month 2: interest 9.90 and 10. B is cleared with 510; the 10 left over goes to A: A 969.90.
3. Month 3: interest 9.70; the full 540 goes to A: A 439.60. Month 4: interest 4.40 and A is cleared.
4. Total interest = 10 + 20 + 9.90 + 10 + 9.70 + 4.40 = 63.99 over 4 months.

Two $1,000 debts at 12% and 24% are cleared in 4 months for $63.99 of interest by paying $540 a month, highest rate first.

What the result means

The avalanche method (highest rate first) always costs the least interest. The snowball method (smallest balance first) clears individual debts sooner, which some people find more motivating. The calculator shows both so you can see what the motivation costs.

Assumptions and limits

• Interest is charged monthly at APR ÷ 12; no new borrowing or fees.
• Rates and minimum payments stay the same.
• The monthly budget stays the same after each debt is paid off, so its minimum rolls over.
• Credit card minimums usually fall as the balance falls; here each minimum is fixed, which is what you should aim to keep paying anyway.
• Promotional 0% periods that end are not modelled.

Sources

• Consumer Financial Protection Bureau