Debt Payoff Calculator
Use this debt payoff calculator to plan how to clear credit cards, personal loans, car loans or student loans. Enter up to five debts with their balance, APR and minimum payment, add whatever extra you can pay each month and pick a strategy. You'll see how many months it takes to become debt-free, the total interest, and how much you save compared with paying only the minimums.
Updated
Results
- Total interest
- Total paidBalances plus interest
- Interest savedCompared with paying only the minimums
- Months savedCompared with paying only the minimums
- Monthly payment budgetAll minimums plus your extra payment
- Number of debts
| Debt | Starting balance | APR | Paid off in month | Interest paid |
|---|
Results are estimates. See the methodology below.
How to use the calculator
- Balance: what you owe today on each debt, from your latest statement or online account.
- APR: the annual percentage rate shown on the statement. For a card with several rates (purchases, cash advance, promo), use the one that applies to most of the balance.
- Minimum payment: the required monthly payment. For installment loans, that's the regular monthly payment.
- Extra payment: money you can add each month on top of all the minimums. It can be $0.
- Strategy: avalanche (highest APR first) or snowball (smallest balance first).
Leave unused debt rows empty. If a minimum doesn't even cover the monthly interest, the calculator tells you the smallest payment that would.
How the calculator works
The plan uses a fixed monthly budget: the sum of all minimum payments plus your extra amount. Every month the calculator:
- Adds one month of interest to each balance:
balance × APR ÷ 12. - Pays the minimum on every debt that is still open.
- Sends whatever is left of the budget to the target debt: the highest APR (avalanche) or the smallest balance (snowball).
When a debt is paid off, its minimum isn't dropped from the budget; it rolls over to the next target. That growing payment is what pays the later debts off quickly.
The comparison runs the same rules with no extra payment, so interest saved and months saved show the effect of the extra money alone. The model assumes no new charges, fixed APRs, no fees and on-time payments. Real minimums on credit cards usually shrink as the balance falls; here they stay fixed, which matches the habit of keeping your payment the same.
Worked examples
1. Two cards and a car loan, $200 extra
Card A: $6,000 at 22.9%, minimum $180. Card B: $2,500 at 27.5%, minimum $75. Car loan: $12,000 at 6.9%, payment $240. The budget is $695 a month.
| Plan | Months | Total interest |
|---|---|---|
| Minimums only ($495) | 58 | $8,030.03 |
| Avalanche, +$200 | 35 | $3,823.57 |
The extra $200 saves $4,206.46 in interest and 23 months. Card B is gone in month 11, card A in month 24 and the car loan in month 35. Here snowball gives exactly the same result, because the smallest balance also has the highest APR.
2. When the two strategies differ
Card A: $1,200 at 19.9%, minimum $40. Card B: $7,500 at 26.9%, minimum $190. Car loan: $9,000 at 7.5%, payment $280. Extra: $300, for a budget of $810.
| Strategy | First debt cleared | Months | Total interest |
|---|---|---|---|
| Avalanche | Card B, month 19 | 26 | $3,061.20 |
| Snowball | Card A, month 4 | 26 | $3,190.15 |
Both finish in 26 months. Snowball closes an account 15 months sooner but costs $128.95 more in interest.
Avalanche or snowball?
Avalanche always directs extra money to the most expensive debt, so it gives the lowest total interest of the two. Snowball gives you an early, visible win and fewer bills to track sooner. When the rates are close or the small debt is also the expensive one, the gap is small or zero. The method you'll actually stick with matters more than the difference, so compare both with your own numbers.
Frequently asked questions
Does the extra payment go to the right balance on my credit card?
Within a single card that has several balances, federal rules (Regulation Z, 12 CFR 1026.53) require the issuer to apply anything above the minimum to the balance with the highest APR first. Choosing which card or loan gets the extra money is up to you, and that's what this calculator plans.
What if I keep using my credit cards?
New purchases add to the balance, so the payoff date in the results won't hold. The plan works best if you stop adding charges to the debts you're paying down.
Why does the calculator say my minimum is too low?
If a payment is smaller than one month of interest, the balance grows and the debt never ends. For example, $6,000 at 22.9% builds about $114.50 of interest a month, so the minimum has to be higher than that. Check the amount on your statement.
Should I include my mortgage?
You can, but a mortgage usually has the lowest rate and the longest term, so avalanche would put it last anyway. Many people plan consumer debts here and handle the mortgage separately with a prepayment calculator.
Is debt consolidation better?
A consolidation loan or balance transfer only helps if the new APR, plus any fees, is lower than what you pay now and you don't run the old balances back up. Enter the new loan as a single debt and compare the total interest with your current plan.
How does this relate to my debt-to-income ratio?
Each debt you clear removes its minimum payment from your monthly obligations, which lowers your debt-to-income ratio, a figure lenders look at. Our DTI calculator shows that number.
Sources
This calculator gives estimates for planning only and is not financial advice. Your lenders' interest calculations, fees and payment rules determine the actual amounts.