Free Finance Tool
Add your debts, pick a payoff strategy, set an extra monthly payment — and see exactly when you'll be debt-free, how much interest you'll save, and what order to pay everything off.
Your Debts & Settings
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Payoff Summary
Avalanche vs Snowball — Side by Side
Same debts and extra payment — how each strategy stacks up.
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| Priority | Debt | Balance | Rate | Min Payment | Paid Off Month | Est. Date |
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Learn
A debt payoff planner is a tool that tells you exactly when you'll be debt-free — not just vaguely "someday." You enter each debt (balance, interest rate, minimum payment), choose a payoff strategy, and add any extra amount you can pay each month. The calculator runs the numbers month by month and shows you your payoff date, total interest paid, and the precise order to attack your debts.
Without a plan, most people pay minimums and watch debt balances creep down at a glacial pace. A structured approach — using avalanche or snowball — can cut years off your debt journey and save thousands in interest.
These are the two most proven debt payoff strategies. They differ only in which debt gets your extra payment each month.
Target the highest interest rate debt first. Pay minimums on everything else. When the top debt is gone, roll its freed payment to the next-highest rate. This method minimises the total interest you pay — mathematically the most efficient path out of debt.
Target the smallest balance first. Each debt you eliminate gives you a psychological win — and research from the Harvard Business Review and Kellogg School suggests these small wins keep people more motivated to finish the journey, even if it costs slightly more in interest.
Each month, this calculator:
The "freed minimums" piece is what makes the avalanche and snowball so powerful. When a $3,500 credit card at $70/month is paid off, that $70 doesn't disappear — it rolls into your extra payment pool, accelerating the next debt. The payments you make each month stay constant; they just get more effective over time.
Find your extra: Even $50–100/month extra cuts years off most debt plans. Run the calculator with different extra payment amounts — the time saved often surprises people.
Stop adding new debt: Paying off debt while adding new balances is like draining a bathtub with the tap running. Freeze your credit card usage (literally if needed) while executing your payoff plan.
Redirect windfalls: Tax refunds, work bonuses, gifts — any lump sum paid directly to your priority debt can shave months off your timeline. The calculator doesn't model this, but the effect is real.
Negotiate rates: Call your credit card company and ask for a rate reduction. It works more often than people realise — especially if you have a history of on-time payments. A 2–3% rate cut can save hundreds in interest.
One of the most common personal finance dilemmas. The general framework:
Always pay minimums on everything — missing payments destroys your credit score and triggers late fees.
Capture any employer match first — a 401(k) or pension match is a 50–100% instant return. No debt payoff strategy beats that. Contribute at least enough to get the full match.
High-rate debt (above ~8%): pay it off. A guaranteed 20% credit card rate reduction beats an uncertain 8–10% market return every time.
Low-rate debt (below ~4%): invest the difference. Mortgages, many student loans, and car loans at low rates are often worth holding while investing the extra.
Mid-range (4–8%): personal judgment. Many financial planners suggest a split — accelerate debt payoff while still investing enough to benefit from compound growth.