See exactly when you'll be debt-free, how much interest you'll pay, and compare payoff strategies.
Enter each of your debts — balance, annual interest rate, and minimum monthly payment. Then choose how much extra money you can put toward debt each month and select a payoff strategy. Click Calculate Payoff Plan to see your debt-free date, total interest paid, and a complete month-by-month payment schedule.
The difference between paying only minimums and adding even $100–$200 extra per month can be staggering. A $10,000 credit card balance at 20% APR with a $200 minimum payment takes over 9 years to pay off and costs roughly $11,000 in interest alone — more than the original debt. Paying an extra $200/month cuts that to under 3 years and saves $8,000 in interest.
Choosing the right strategy also matters. The avalanche method targets the highest-interest debt first, minimizing total interest paid — typically the mathematically optimal choice. The snowball method pays off the smallest balance first, building psychological momentum through quick wins. Studies show both work well; the best method is the one you'll actually stick with.
Anyone carrying credit card debt, personal loans, student loans, or car loans can benefit from a payoff plan. Even if you can't add extra payments right now, knowing your payoff timeline helps with budgeting and motivation.
Each month, interest accrues on the remaining balance: Interest = Balance × (APR ÷ 12). Your payment reduces the principal by (Payment − Interest). Extra payments are allocated to the priority debt based on your chosen strategy. When a debt is paid off, its freed-up minimum payment rolls into the next target debt (the "debt roll" effect).
Avalanche: Extra payment always goes to the highest-APR debt.
Snowball: Extra payment always goes to the lowest-balance debt.
Minimum Only: Only minimums are paid — no roll-over applied.
The avalanche method pays off the highest-interest debt first, saving the most money in total interest. The snowball method targets the smallest balance first for faster wins. Mathematically, avalanche is superior, but snowball can be more motivating for some people — and motivation matters for staying on track.
If your debt interest rate is higher than your expected investment return (typically 7–10% for index funds), prioritize paying off debt. High-interest credit card debt at 18–24% almost always beats investing first. Lower-rate debt (under 6%) is a toss-up worth calculating individually.
When you fully pay off a debt, the money you were spending on it — including the minimum — gets redirected to the next target debt. This "snowball" effect (regardless of strategy) accelerates payoff significantly. Our calculator automatically applies this to all strategies except Minimum Only.
That's okay — enter $0 for extra payment to see your current payoff timeline. Use this as a baseline to understand the cost of minimum-only payments, then try adding even $25 to see the difference. Seeing concrete numbers often motivates finding room in the budget.