Debt payoff calculator
List your debts with the balance, interest and minimum payment, and say how much you can pay per month in total. The calculator compares the snowball and avalanche methods and shows the month-by-month plan.
How to useHow long until you are debt-free?
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Debt payoff calculator: what it is for
List your debts with the balance, interest and minimum payment and enter how much you can pay per month in total. The calculator simulates, month by month, the two best-known methods to get out of debt: the snowball, which tackles the smallest debt first, and the avalanche, which tackles the highest interest first.
The result shows the time to pay everything off, the interest paid with each method, how much the avalanche saves, a chart of the balance over the months and the order in which each debt is paid off.
How to use
- Enter each debt with its balance, interest and minimum payment.
- Enter how much you can pay per month in total.
- Compare time and interest of the two methods and follow the suggested order.
When to use it
- Planning to pay off credit cards and overdrafts.
- Deciding which debt to pay first.
- Seeing how much an extra amount per month shortens the time.
Frequently asked questions
What is the difference between snowball and avalanche?
With the snowball you pay the minimum on every debt and put the extra money on the smallest balance; when it is gone, its payment goes to the next one. With the avalanche the extra money goes to the debt with the highest interest. The avalanche pays less interest; the snowball gives quick wins and helps you stay motivated.
What if my monthly amount does not cover the interest?
If what you pay each month is less than the interest added, the debt never ends. The calculator warns you when this happens: increase the monthly amount or try to negotiate a lower rate.
Is it really free?
Yes, 100% free. No sign-up, no subscription and no usage limits. All Tools123 are free.