Debt Payoff Calculator

Compare debt avalanche and debt snowball payoff methods side-by-side using balances, APRs, minimum payments, and extra monthly payment.

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Debts

Enter each debt balance, APR, and minimum monthly payment. Blank rows are ignored.

Use this Debt Payoff Calculator to compare the debt avalanche and debt snowball methods. Enter each debt’s balance, APR, minimum payment, and any extra amount you can pay each month.

Important: The results are estimates. Actual payoff dates and interest can differ because lenders may calculate interest and minimum payments differently.

Debt Payoff Calculation Method

The calculator estimates each debt month by month.

Monthly interest rate = APR ÷ 12 ÷ 100

Monthly interest = current balance × monthly interest rate

New balance = current balance + interest − payment

The total monthly amount available for repayment is:

Total monthly payment = total minimum payments + extra monthly payment

Debt Avalanche

Make the minimum payment on every debt, then direct the extra payment toward the debt with the highest APR. After that debt is paid off, its payment is redirected to the next highest-rate debt.

This method generally minimizes total interest when the debts and payment amounts remain otherwise unchanged.

Debt Snowball

Make the minimum payment on every debt, then direct the extra payment toward the debt with the smallest balance. After it is paid off, that payment is redirected to the next smallest debt.

This method may provide faster early payoff milestones, although it can cost more interest when higher-rate debts remain unpaid longer.

Example

Suppose you have:

  • Debt A: $4,000 balance, 22% APR, $120 minimum payment
  • Debt B: $2,000 balance, 18% APR, $70 minimum payment
  • Debt C: $6,000 balance, 10% APR, $180 minimum payment
  • Extra monthly payment: $200

Total starting debt = $12,000

Total minimum payments = $370

Total monthly payment = $370 + $200 = $570

With the avalanche method, the extra payment targets Debt A first because it has the highest APR:

Debt A → Debt B → Debt C

With the snowball method, the extra payment targets Debt B first because it has the smallest balance:

Debt B → Debt A → Debt C

Important Notes

  • Use current balances, APRs, and required minimum payments from your latest statements.
  • Continue making at least the required minimum payment on every debt.
  • Paying more than the minimum can generally reduce payoff time and interest cost.
  • Credit card interest may be calculated daily rather than with the simplified monthly method used by the calculator.
  • Minimum payments can change as balances change.
  • Promotional APRs, deferred-interest offers, balance transfers, fees, late payments, new purchases, and variable rates can significantly change the actual payoff result.
  • Confirm how your lender applies extra payments, especially for installment loans or accounts with multiple balance types.
  • The calculator does not provide debt settlement, bankruptcy, legal, or individualized financial advice.

If you are unable to make required payments or are experiencing serious debt problems, consider contacting your creditors or a reputable credit counselor rather than relying only on a payoff projection.

Sources

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