Debt Payoff Calculator
If you're juggling credit card balances, a personal loan, and maybe a car note, this calculator builds a clear path to debt-free. List each debt with its balance, APR, and minimum payment, set how much extra you can put toward debt each month, and choose either avalanche (highest APR first) or snowball (smallest balance first) — the model returns the total months to zero.
How is this calculated?
Each month, every debt accrues interest at APR/12 and receives at least its minimum payment. The extra monthly amount is directed at the priority debt — highest APR for avalanche, smallest balance for snowball. As each debt clears, its minimum payment rolls into the extra pot, accelerating the next debt (the snowball effect). The model assumes payments are made on time. Federal student loans on income-driven plans behave differently and need their own modeling — the U.S. Department of Education tools are better for those.
Frequently Asked Questions
Avalanche or snowball — which should I pick?
Avalanche minimizes total interest because you attack the most expensive debt first. Snowball maximizes motivation by clearing the smallest balance fastest. If the interest difference between your debts is small, the behavioral edge of snowball often outweighs the optimization of avalanche. Pick what you'll stick with.
Should I consolidate everything into one personal loan?
Consolidation can simplify life and lower the average rate, but only if the new loan APR is genuinely below your current weighted average — and only if you cut up the credit cards afterwards. Many people consolidate, then re-rack the cards and end up worse off than before.
What if I can't afford the minimums?
Stop and get free help before missed payments hit your credit. Nonprofit credit counseling agencies certified by the NFCC offer free budget reviews and can negotiate Debt Management Plans with creditors. Avoid for-profit debt settlement firms that promise to make debt 'disappear' — they cause severe credit damage and often charge huge fees.
Should I prioritize federal student loans?
Usually no. Federal student loans have low fixed rates, generous deferment options, and forgiveness pathways (PSLF, IDR). Pay the minimum and direct extra cash at higher-rate consumer debt first. Private student loans behave more like personal loans and should be ranked alongside other consumer debt by APR.
Last updated: May 2026 · Rates sourced from IRS