How to use the debt payoff calculator
- On the All debts tab, list each credit card, auto loan, student loan, personal loan or medical bill with its Balance, APR and Minimum payment. Use Add a debt for more rows and the trash icon to remove one. Your list stays saved in this browser.
- Enter the Total you can pay each month across all debts. It has to be at least the sum of the minimum payments.
- Choose Avalanche or Snowball. The comparison table always shows both methods and the cost of paying only the minimums.
- Read your debt-free date, follow the Payoff order and check the Month-by-month timeline. Copy results saves a summary you can paste into a note or spreadsheet.
- To focus on one card, open Credit card payoff: enter the balance and APR, then either a monthly payment (to see how many months it takes) or a number of months (to see the payment you need).
How the debt snowball and avalanche work
Both methods use the same rule: pay the minimum on every debt, then put every extra dollar on one target debt. When the target is paid off, its minimum and the extra roll over to the next one, so the amount attacking your debt grows as each balance disappears. Each month the calculator adds interest at the APR divided by 12, makes the minimum payments, then sends the rest of your budget to the target.
- Debt avalanche targets the highest APR first. It always costs the least interest overall, which usually means your credit cards go first.
- Debt snowball targets the smallest balance first, whatever its rate. You close accounts faster, and those early wins help many people stay on track, even if it costs a little more interest. This page doubles as a debt snowball calculator: pick Snowball and the order and dates update instantly.
- Minimums only pays each debt its own minimum with no roll-over. It is shown so you can see what the plan saves.
Worked example
Suppose you have two credit cards ($4,500 at 24.99% APR with a $135 minimum, and $1,800 at 21.49% with a $54 minimum), a $12,000 auto loan at 7.5% ($360 a month) and $18,000 of student loans at 5.5% ($195 a month). That is $36,300 of debt and $744 of minimum payments. With $1,000 a month:
- Avalanche clears the first card in month 14, the second in month 17, the auto loan in month 26 and the student loans in month 42. You are debt-free in 3 years and 6 months and pay about $4,907 in interest.
- Snowball clears the smaller card first, in month 7, and also finishes in month 42, with about $4,980 of interest: around $72 more than avalanche.
- On minimum payments alone, the student loans would take just over 10 years.
Credit card payoff calculator
The Credit card payoff tab answers the two questions people ask most about a single card. At a fixed payment, it uses the standard formula for the number of months n = −ln(1 − B × r ÷ P) ÷ ln(1 + r), where B is the balance, r the monthly rate and P the payment. For a target date, it works out the level payment that clears the balance in that many months. For example, a $6,000 balance at 22.99% APR takes 33 months to pay off at $250 a month, with about $2,113 of interest. To be debt-free in 24 months you would need to pay about $314.21 a month, and the interest falls to about $1,541.
If a payment is less than a month's interest, the balance never goes down, and the calculator tells you the minimum you need to beat. A 0% balance transfer can speed things up, but check the transfer fee and the rate after the promotion ends.
Tips that make the plan work
- Stop adding new charges to the cards you are paying off.
- Put windfalls such as a tax refund or bonus straight on the target debt.
- Ask your card issuer for a lower APR; even a few points shortens the plan.
- Find room in the budget: see what you really take home with the paycheck calculator or US salary calculator.
Thinking about a consolidation loan? Compare its cost with the US loan calculator, check a car payment with the auto loan calculator, or browse all salary and money calculators.
Frequently asked questions
Is the debt snowball or the debt avalanche better?
The avalanche saves the most interest because it targets the highest APR first. The snowball pays off small balances first for quicker wins. If the table shows only a small difference, pick the one you will stick with.
How long will it take to pay off my credit card?
Use the Credit card payoff tab: enter the balance, APR and your monthly payment. For example, $6,000 at 22.99% APR takes 33 months at $250 a month.
How much do I need to pay to clear my credit card in a year?
Choose "The payment needed to be debt-free by a set time" and enter 12 months. The table under the result also lists the payment and interest for 6 to 60 months.
Why does paying the minimum take so long?
Much of each minimum payment goes on interest, and card minimums usually shrink as the balance falls, so the debt can last for many years. Paying a fixed amount above the minimum is the simplest way to speed it up.
Should I include my mortgage?
Usually not. Debt payoff plans focus on consumer debt such as credit cards, auto loans, personal loans and student loans. A mortgage has a low rate and a long term, so it would sit last in either order and push the debt-free date out by decades.
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