Debt Payoff Calculator

Calculate debt payoff using snowball or avalanche strategies

Debt Name

Balance ($)

Interest Rate (%)

Monthly Payment ($)

Payoff Strategy

About This Calculator

The Debt Payoff Calculator helps you create a strategy to pay off multiple debts efficiently. You can choose between the snowball method (paying smallest balances first) or avalanche method (paying highest interest rates first) to optimize your debt repayment.

How It Works

1
Add all your debts with balances and interest rates.
2
Enter your total monthly payment amount available for debt repayment.
3
Choose between snowball (smallest balance first) or avalanche (highest interest first) strategy.
4
The calculator shows payoff time and total interest for your chosen strategy.

Formula Explanation

Avalanche Method: Pay highest interest rate debts first

This method minimizes total interest paid by prioritizing debts with the highest interest rates, saving the most money overall.

Snowball Method: Pay smallest balance debts first

This method provides psychological motivation by eliminating smaller debts quickly, creating momentum for larger debts.

Monthly Interest = Balance × (Rate / 12)

Interest is calculated monthly on each debt based on its current balance and interest rate.

Tips

Avalanche method saves more money in interest over time.
Snowball method provides faster psychological wins and motivation.
Consider your personality and financial situation when choosing a strategy.
Once a debt is paid off, apply its payment to the next debt.
Avoid taking on new debt while paying off existing debts.

Common Uses

Debt Strategy Planning

Compare snowball vs. avalanche methods to find the best strategy.

Multiple Debt Management

Create a plan to pay off multiple debts efficiently.

Interest Cost Analysis

See how much interest you will pay with different strategies.

Payment Optimization

Determine the most efficient way to allocate payments across debts.