Debt Calculator
How the Calculator Works
This calculator helps you create a debt repayment plan using two popular strategies:
- Debt Snowball: Pay off smallest debts first for quick wins
- Debt Avalanche: Pay off highest interest debts first to save money
- Track multiple debts with different interest rates
- Calculate total interest paid and payoff dates
- Visualize your debt repayment journey
- Compare different repayment strategies
Enter your debts below to create a personalized repayment plan.
Debt Payoff Calculator
Compare debt snowball (lowest balance first) and avalanche (highest interest first) methods to find the best debt repayment strategy for you.
Add Your Debts
Key Calculations Explained
Debt Snowball Method
The snowball method focuses on:
- Paying off smallest debts first
- Building momentum with quick wins
- Rolling payments into larger debts
- Psychological motivation through visible progress
Debt Avalanche Method
The avalanche method focuses on:
- Paying off highest interest debts first
- Minimizing total interest paid
- Mathematically optimal repayment strategy
- Potentially faster overall debt elimination
Monthly Payments
Monthly payments are calculated as:
- Minimum payment plus any additional payment
- Interest calculated on remaining balance
- Principal payment after interest is covered
- Rolling payments into next debt when one is paid off
Important Considerations
Strategy Selection
Choose between snowball and avalanche based on your financial situation and psychological needs. Snowball may be better for motivation, while avalanche saves more on interest.
Additional Payments
Making additional payments can significantly reduce your total interest paid and shorten your repayment timeline. Even small extra payments can make a big difference.
Interest Rates
Higher interest rates mean more of your payment goes to interest rather than principal. Focus on high-interest debts first to maximize your repayment efficiency.
Disclaimer: This calculator provides estimates only and should not be considered financial advice. The calculations are based on the information you provide and current interest rates. Actual repayment times and total interest paid may vary based on changes in interest rates, additional fees, or changes to your repayment schedule. The calculator does not account for potential changes in your financial situation or unexpected expenses that may affect your ability to make payments. Please consult with a qualified debt advisor or financial counselor for personalized advice regarding your debt repayment strategy.