Credit and debt
Debt payoff planner
List each debt with its balance, APR, and minimum payment, then add any extra you can pay each month. The page compares the two common payoff orders.
What this means
- Paying $200.00 extra each month with the avalanche method clears every debt in 2 years 10 months.
- This method saves $226.34 in interest compared with the other one.
- When a debt is paid off, its minimum rolls into the next one, so the total monthly payment stays the same.
What if
About this calculator
What this calculator does
It simulates paying several debts at once. Every month it charges interest, pays each minimum, and sends the extra to one target debt. Avalanche targets the highest APR. Snowball targets the smallest balance.
How it is calculated
monthly interest = balance * APR / 12, rounded to the cent
budget = sum of minimums on debts with a balance + extra
leftover budget goes to the target debt until it reaches zero
How to read the result
Debt-free in is how long until every balance is zero. The comparison line shows the same budget with the other method.
Which method is better?
Avalanche usually costs the least interest because it attacks the most expensive debt first. Snowball clears small debts sooner, which some people find easier to stick with. The numbers here show the trade-off for your debts.
Sources and method
Monthly interest on each debt, minimums on all, extra money to the target debt (highest rate or smallest balance), and freed minimums roll forward.
Questions
What is the debt avalanche?
Pay minimums on everything and put extra money on the highest APR debt first.
What is the debt snowball?
Pay minimums on everything and put extra money on the smallest balance first.
Does it assume no new charges?
Yes. New spending on a card would lengthen the plan.
Why does it say payments do not cover interest?
If the total payment is less than the first month of interest, the balances grow. Raise the payments. If only one method fails, the page says so and shows how long the other method takes.
What about rows with a $0 balance?
They are ignored. A paid-off or blank row does not add its minimum to the monthly budget.
Do minimum payments change as balances fall?
On many cards they do. This page holds each minimum fixed, which is how a payoff plan is usually run.