๐ณ Debt Payoff Calculator
Enter multiple debts (balance, interest rate, minimum payment), a monthly extra payment amount, and a payoff strategy (avalanche or snowball), and this tool simulates how long it will take to become debt-free and the total interest you'll pay. The avalanche method pays off the highest-interest debt first; the snowball method pays off the smallest balance first. Handy for planning a payoff strategy across multiple credit cards or loans.
How to use
- Enter a name, balance, interest rate (APR), and minimum payment for each debt.
- Enter your monthly extra payment (the amount you add on top of the minimum payments).
- Choose a payoff strategy (avalanche or snowball) โ the time to debt-free and total interest are calculated automatically.
FAQ
What's the difference between avalanche and snowball?
The avalanche method directs extra payments to the highest-interest debt first, minimizing total interest mathematically. The snowball method pays off the smallest balance first, giving you quick wins that can be easier to stick with psychologically.
Which method results in a lower total cost?
The avalanche method generally results in less total interest paid, though the difference varies by case โ many people still choose snowball for the motivational benefit of paying off debts faster.
What happens if I set the extra payment to 0?
You'll see the simulation for paying only the minimum on each debt. If the payoff time is extremely long, you may see a "calculation range exceeded" message.