Debt payoff calculator
Add your balances, interest rates and minimum payments, then set any extra you can put in each month. We run both the snowball and avalanche methods so you can see the trade-off between fast wins and cheapest total cost.
snowball method
2 yr 4 mo
to clear $11,600 of debt
Total interest: $1,446
Payoff order: Credit card → Car loan
avalanche method
2 yr 4 mo
to clear $11,600 of debt
Total interest: $1,446
Payoff order: Credit card → Car loan
Which method should you use?
If the interest gap between your debts is small, the snowball usually wins in practice — clearing a whole balance early frees a payment and keeps you going. If you carry one high-rate card well above the others, the avalanche can save real money; the numbers above show exactly how much.
Whichever you pick, the rule that matters is the same: keep the total monthly payment fixed. Every time a debt clears, roll its payment onto the next one instead of absorbing it back into spending.
How the debt payoff calculator works
- 1
List every debt you owe
Add each credit card, loan, overdraft or BNPL plan with its current balance, the annual interest rate (APR) shown on your statement, and the minimum payment your lender asks for.
- 2
Set the extra you can pay each month
Enter anything you can pay above the combined minimums. Even a small fixed extra changes the debt-free date dramatically, because it lands entirely on the target debt.
- 3
Compare snowball against avalanche
The calculator runs both orders on the same budget. Snowball clears the smallest balance first; avalanche attacks the highest interest rate first.
- 4
Pick the order you will actually stick to
Read the total interest and payoff length for each method. If the gap is small, choose the snowball for momentum; if it is large, the avalanche is worth the patience.
- 5
Keep the payment fixed as debts clear
When one balance hits zero, roll its whole payment onto the next debt instead of absorbing it into spending. That rollover is what makes either method accelerate.
Assumptions this calculator makes
- Interest accrues monthly at your APR divided by twelve on the remaining balance, then payments are applied.
- Minimum payments are treated as fixed amounts rather than a percentage of the balance that shrinks over time.
- No new spending is added to the debts while you are paying them down.
- Fees, promotional 0% periods and variable-rate changes are not modelled — check your statement for those.
- Results are an estimate to plan with, not a lender quote.
Frequently asked questions
- What is the difference between the snowball and avalanche methods?
- The snowball method pays the smallest balance first for quick wins and motivation. The avalanche method pays the highest interest rate first, which costs the least in total interest. Both use the same monthly payment; only the order changes.
- How can I pay off debt faster?
- Increase the amount above your combined minimums, keep that payment fixed as balances clear, avoid adding new debt to cleared cards, and move high-rate balances to a lower rate where possible.
- Does this calculator include interest?
- Yes. Interest is applied monthly at rate divided by twelve on the remaining balance, then your payment is applied — the same way most credit card and loan interest accrues.
Turn this plan into a live debt payoff tracker
MoneyQuilt keeps your balances current from imported statements, recalculates your debt-free date every month, and warns you when card utilisation creeps back up.
Free to start · no card required