How this debt payoff calculator works
Enter each debt with its balance, interest rate (APR) and minimum monthly payment, then add any extra amount you can pay each month. The calculator runs month by month: interest is added to every balance, every minimum is paid, and the extra goes to one priority debt until it is cleared.
When a debt is paid off, its minimum payment is not spent elsewhere. It rolls into the extra amount and goes to the next debt, so your monthly payment stays the same while the payoff speeds up. This rollover is why a modest extra payment can cut years off a plan.
Avalanche vs snowball: which should you use?
Both methods pay the same total each month. They only differ in which debt gets the extra money first.
- Avalanche: extra goes to the highest interest rate first. It always costs the least interest overall.
- Snowball: extra goes to the smallest balance first. You clear whole debts sooner, which many people find motivating.
- If the two results are close, pick the one you will actually stick with. If avalanche saves a lot more, it is usually worth the slower first win.
Why minimum payments take so long
On a credit card, much of each minimum payment goes to that month's interest, so the balance falls slowly. If a minimum payment is smaller than the monthly interest, the balance never falls at all, and the calculator will tell you so.
Real card minimums usually shrink as the balance falls, which makes minimum-only payoff even slower than shown here. This calculator keeps each minimum fixed, so treat the minimum-only result as a best case.
Frequently asked questions
Is it better to pay off the highest interest debt or the smallest balance first?
Paying the highest interest rate first (the avalanche method) always costs the least in total interest. Paying the smallest balance first (the snowball method) clears individual debts sooner, which helps some people stay motivated. Enter your debts above to see how big the difference is in your case.
How much faster will I pay off debt with extra payments?
It depends on your balances and rates, but extra payments usually have a large effect because they go straight to the balance rather than interest. Enter your debts and an extra monthly amount to see your debt-free date and total interest compared with minimum payments only.
What happens if my minimum payment is less than the interest?
The balance grows every month even though you are paying, so the debt is never paid off. The calculator flags this. The only fix is a larger payment on that debt, a lower interest rate, or both.
Does this calculator include fees or changing interest rates?
No. It assumes each rate and minimum payment stays the same and there are no new purchases or fees. Real results will differ, so use it to compare strategies rather than to predict an exact date.