Free Debt Payoff Calculator

Our free debt payoff calculator helps you build a clear, actionable plan to eliminate your debts. The CFPB offers additional resources for understanding your rights and options when dealing with debt. Simply enter each debt's name, current balance, annual interest rate (APR), and minimum monthly payment. Then set an extra monthly payment amount and choose your preferred strategy. The calculator instantly shows your projected payoff timeline, total interest cost, and how much you save compared to making only minimum payments.

Avalanche vs Snowball: Which Strategy Is Right for You?

Both methods work -- the best strategy is the one you will stick with. Research from Harvard Business School suggests that the psychological boost of the snowball method helps many people stay committed. However, if you are disciplined and want to minimize total cost, the avalanche method is the mathematically superior choice. Our calculator compares both side-by-side so you can see the exact difference for your situation.

Worked Example: Avalanche vs Snowball with Real Numbers

Consider a borrower with these four debts and $300/month extra to put toward payoff:

Total debt: $38,700. Minimum payments: $610/month. Extra budget: $300/month. Here is how each strategy performs:

• Avalanche (highest rate first): Targets Credit Card A (22.99%) first, then B (18.99%), then Auto, then Student. Debt-free in 38 months. Total interest paid: $5,180.
• Snowball (smallest balance first): Targets Credit Card B ($2,200) first, then Credit Card A, then Auto, then Student. Debt-free in 39 months. Total interest paid: $5,740.
• Minimum payments only: Debt-free in 62 months. Total interest paid: $11,200.

The avalanche method saves $560 vs snowball and $6,020 vs minimums only. But the snowball method eliminates Credit Card B in just 5 months, providing an early motivational win. Either strategy crushes minimum-only payments.

The True Cost of Minimum Payments

Minimum payments are designed by lenders to maximize interest collection. On a $6,500 credit card at 22.99% APR, paying only the $130 minimum takes 8+ years to pay off and costs $5,900+ in interest — nearly doubling the original balance. Every extra dollar above the minimum goes directly to principal and saves multiples of itself in future interest. Even an additional $50/month cuts payoff time by 3+ years.

Tips to Pay Off Debt Faster

• Make more than the minimum payment. Even an extra $50/month can save thousands in interest and shave years off your payoff timeline.
• Use windfalls wisely. Apply tax refunds, bonuses, or side income directly to your target debt for maximum impact.
• Negotiate lower interest rates. Call your credit card companies and ask for a rate reduction. A lower APR means more of each payment goes toward principal.
• Consider balance transfer cards. A 0% APR balance transfer can give you a window to pay down principal without accruing interest, but watch for transfer fees and end-of-promotion rates.
• Automate your payments. Set up automatic payments to ensure you never miss a due date and avoid late fees that add to your balance.
• Track your progress. Revisit this calculator monthly to see how far you have come and stay motivated on your debt-free journey.

Your Financial Plan Beyond Debt

• Budget Planner — Find extra money for debt payments each month.
• Compound Interest Calculator — Once debt-free, redirect payments into savings and see how quickly your money grows.
• Credit Card Payoff Calculator — Get credit card-specific payoff strategies and timelines.
• Student Loan Calculator — Account for income-driven repayment plans and forgiveness programs.