# Debt Payoff Calculator

> Plan paying off several debts or credit cards with one monthly budget, using the avalanche or snowball method, and see your debt-free date and interest.

Category: Finance · Applies to: Worldwide · Last updated: 2026-10-29
Interactive calculator: https://calculators.geekmidst.com/calculators/debt-payoff-calculator

List your debts and the total you can pay each month. Every debt gets its minimum, the rest goes to one target debt, and each paid-off minimum rolls on to the next.

Also called: Credit cards payoff calculator, Debt snowball calculator, Debt avalanche calculator.

## Inputs
- Your debts (one per line: balance, APR %, minimum payment) (default Card A: 3,000, 22.9, 90
Card B: 1,500, 18, 45
Car loan: 8,000, 6.5, 250)
- Total you can pay each month (default 600)
- Pay extra towards (options: Highest rate first, Smallest balance first; default avalanche)
- Currency

## Results
- Debt-free in
- Months to debt-free
- Total interest
- Total paid
- Payoff order
- Interest with the other method
- Months with the other method

## Formula

```
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
```

Where:
- 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.

**Result:** 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.

## Questions

### Avalanche or snowball?

Avalanche saves the most money. Snowball can help if early wins keep you going. If the difference shown is small, pick the one you will stick with.

### What if my budget is less than the minimums?

The calculator needs at least the sum of the minimum payments. If you cannot pay that, contact the lenders or a non-profit credit counsellor early.

## Sources
- [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)

## Related calculators
- [Credit Card Calculator](https://calculators.geekmidst.com/calculators/credit-card-calculator)
- [Debt Consolidation Calculator](https://calculators.geekmidst.com/calculators/debt-consolidation-calculator)
- [Repayment Calculator](https://calculators.geekmidst.com/calculators/repayment-calculator)

_This calculator gives estimates for planning. It is not financial advice, and lenders’ actual terms, fees and rounding may differ._

Source: GM¹X CalcVerse — https://calculators.geekmidst.com/calculators/debt-payoff-calculator