How to use the Debt Payoff Calculator
- List each debt with its balance, APR and minimum monthly payment.
- Add any extra amount you can pay every month on top of the minimums.
- Compare the avalanche and snowball plans: payoff date, interest paid and the order debts disappear.
How it works
Each month interest is added to every balance (APR ÷ 12), all minimum payments are made, and the remaining budget — your extra payment plus the minimums of debts already paid off — goes to one target debt:
- Debt avalanche: target the highest interest rate first. Mathematically cheapest.
- Debt snowball: target the smallest balance first. Quick wins that keep many people motivated.
Because freed-up minimums roll into the next debt, the total monthly payment stays constant until everything is paid.
Frequently asked questions
Which is better, snowball or avalanche?
Avalanche always pays the least interest. Snowball can cost a little more but clears small debts fast, which helps many people stay on track. The best plan is the one you will stick with.
Should I consolidate my debt instead?
A consolidation loan or 0% balance-transfer card can help if the new rate is clearly lower than your current rates and you stop adding new debt. Watch for transfer fees and promotional periods ending.
Does paying extra hurt my credit?
No. Paying down revolving balances lowers your credit utilization, which usually improves your score.