Debt Payoff Strategy Calculator
Model payoff schedules with custom extra monthly payments.
Debt Payoff Strategy Calculator
Compare debt snowball and avalanche using each balance, APR, minimum, and extra monthly budget.
Modeled payoff
Debt-free after
3 yrs 6 mo
- Estimated total interest
- $4,054.05
- Total payments
- $29,054.05
- Payoff order
- Credit card → Auto loan → Student loan
Model assumes interest accrues monthly, each debt's minimum is paid, and remaining budget follows the selected strategy. Fees, changing rates, due-date timing, and lender rules are excluded.
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What This Calculator Does
The Debt Payoff Strategy Calculator simulates monthly repayments across up to eight debts using the debt avalanche (highest APR first) or debt snowball (lowest balance first) method. Add an extra monthly payment to see how much faster you become debt-free and how much interest you save.
How It Works
Each month, interest accrues based on annual percentage rate divided by twelve. Minimum payments are applied across every debt first. Any remaining monthly budget is concentrated entirely on the primary target debt until it reaches a zero balance, after which that freed payment rolls into the next target debt.
Example
With three debts totaling $25,000 and an extra $100 monthly budget, the avalanche strategy prioritizes the 24% APR card, clearing all debt faster and saving hundreds in interest compared to paying minimums alone.
Formula
Interest = Current Balance × (APR / 1200)Sort active debts by descending APRSort active debts by ascending balanceReading the Results
Debt-free after
The projected calendar months or years required to eliminate all entered debt balances.
Estimated total interest
The cumulative financing interest accrued across all debts until the final payment is made.
Payoff order
The chronological sequence in which each debt account is fully paid off under the active strategy.
Frequently Asked Questions
What is the difference between debt snowball and debt avalanche?
Debt avalanche targets the highest-interest debt first to minimize total interest paid. Debt snowball pays off the smallest balance first to build quick psychological momentum.
Which debt payoff strategy saves more money?
Mathematically, the debt avalanche method always results in equal or lower total interest paid because it eliminates high-interest charges faster.
What happens if my payment does not cover monthly interest?
If minimum payments fall below monthly interest accrual, balances grow indefinitely. The calculator requires amortizing payments that pay off every debt.
Can I add extra monthly payments?
Yes. Entering an extra monthly payment applies those surplus funds directly to the target debt once all minimums are satisfied.