Debt Payoff Calculator
Your Debts
Add all your debts to see the best payoff strategy
How to Use This Calculator
This calculator helps you create an optimal strategy for paying off multiple debts. Add all your debts, choose a payoff method, and see how extra payments can accelerate your journey to being debt-free.
Payoff Strategies Explained
- Avalanche Method: Pay minimums on all debts, then apply extra payments to the debt with the highest interest rate. This method saves the most money on interest but may take longer to see the first debt paid off.
- Snowball Method: Pay minimums on all debts, then apply extra payments to the debt with the lowest balance. This method provides psychological wins by eliminating debts faster, which can help maintain motivation.
Tips for Success
- List all your debts, including credit cards, loans, and other obligations
- Be realistic about how much extra you can pay each month
- Consider using windfalls (tax refunds, bonuses) for debt payments
- Automate your payments to ensure consistency
- Celebrate milestones as you pay off each debt
Why Extra Payments Matter
Even small extra payments can significantly reduce your payoff time and interest paid. For example, an extra $50/month on a typical credit card debt can save years and thousands in interest.