Debt Payoff Calculator

Each month, interest accrues on every balance. You pay the minimum on all debts, then direct any extra money to your priority debt. When that debt is paid off, its payment budget rolls into the next debt — accelerating payoff without increasing your total monthly outlay.

The snowball method targets the smallest balance first regardless of interest rate. Paying off a debt quickly can build momentum and motivation, even if it doesn't always minimize total interest.

The avalanche method targets the highest interest rate first. Because it attacks the most expensive debt, it usually saves the most interest over the life of the plan — though early wins may come slower than with the snowball.

The avalanche generally minimizes interest; the snowball can be easier to stick with because of early, visible progress. The best choice is the one you'll follow through to completion. This calculator lets you compare both strategies with the same debts.

Higher-rate balances grow faster, so carrying them longer costs more. Directing extra money to high-rate debt first reduces the total interest paid — the core idea behind the avalanche method.

Any amount above the minimum goes straight to principal on your priority debt, lowering the balance and the interest that accrues on it every month after. Even a modest extra payment can shorten your debt-free date by months or years.

When a debt is paid off, the money you were paying on it doesn't disappear — it's added to the next priority debt. This "rollover" keeps your total monthly debt payment constant while accelerating each remaining balance.

If a minimum payment doesn't cover the monthly interest, the balance grows rather than shrinks — called negative amortization. The calculator detects this and warns you instead of running an endless calculation.