Debt Payoff Calculator
Add your debts and what you can pay. See your debt-free date, the interest you'll pay and which order clears them fastest and cheapest.
Credit cards, loans, overdrafts, store cards, student loans. Paying off just one card? Try the credit card payoff calculator.
Paid every 12th month.
Debt-free by a date
Payoff schedule and chart
How your payoff plan is worked out
Pay every minimum, aim the rest at one debt, then roll it on.
- 1
Your monthly budget
$460 minimums+ $200 extra= $660 a month
- 2
Pick the target
Avalanche:Credit card first22.9% is highest
- 3
Roll it over
Credit card: mo 15its $320 moves onNext gone: mo 17
- 4
Debt-free
26 monthsInterest $1,790Saves $2,094
Read more: the formula, a worked example, the strategies and notes
Every debt charges interest each month on what you still owe. The plan pays every minimum so nothing falls behind, then puts all the money left over on one target debt. When the target is paid off, its whole payment moves to the next debt on the list (the roll-over, or "snowball"), so the amount hitting each new target keeps growing.
The formula
monthly budget = all the minimums + extra each month (+ any yearly extra or lump sum that month)
each month, for every debt: interest = balance × APR ÷ 12 ÷ 100, then balance = balance + interest − payment
payment = its minimum (or what's left, if less), and the target also gets budget − all the minimums paid
when a debt reaches 0, the next debt in your order becomes the target
interest saved = interest paying minimums only − interest with your plan
Worked example
Three debts: a credit card of $4,000 at 22.9% (minimum $120), a car loan of $9,500 at 7.5% (minimum $280) and a personal loan of $1,500 at 12.9% (minimum $60), with $200 extra. The budget is $120 + $280 + $60 + $200 = $660 a month.
Month 1 interest: card $4,000 × 22.9 ÷ 1,200 = $76.33, car $9,500 × 7.5 ÷ 1,200 = $59.38, loan $1,500 × 12.9 ÷ 1,200 = $16.13. With the avalanche method the card (highest rate) is the target, so it gets $120 + $200 = $320 and its balance falls to $4,000 + $76.33 − $320 = $3,756.33. The car loan gets $280 and the loan $60.
The card is paid off with the 15th payment, its $320 rolls onto the personal loan, which is cleared in month 17, and then everything goes on the car loan, cleared in month 26. Total interest: $1,790.03. Paying only the minimums takes 54 months and costs $3,884.42, so the plan saves $2,094.39 and 28 months.
| Same three debts, $200 extra | Months | Interest |
|---|---|---|
| Avalanche (card, loan, car) | 26 | $1,790.03 |
| Highest interest cost (card, car, loan) | 26 | $1,812.97 |
| Snowball (loan, card, car) | 26 | $1,924.21 |
| Highest payment (car, card, loan) | 27 | $2,511.32 |
| Avalanche without roll-over | 30 | $1,863.08 |
| Avalanche + $1,000 lump sum in month 3 | 24 | $1,474.07 |
| Minimums only | 54 | $3,884.42 |
The snowball clears the personal loan in month 6, much sooner than the avalanche does (month 17), which is why many people find it easier to stick with, but it costs $134.18 more here.
The strategies
- Avalanche: highest interest rate first. Almost always the least interest.
- Snowball: smallest balance first. Quick wins that keep you going.
- Highest payment first: frees up the biggest minimum, handy if cash each month is tight later on.
- Highest interest cost first: the debt costing the most in money each month (balance × rate) first.
- My order: the order you list them, for example a loan from family first.
The order is set once from your starting balances, rates and minimums, as most debt planners do. Ties keep the order you listed them.
Assumes rates and minimums stay the same, payments are made on time once a month and interest is charged monthly on the balance carried (APR ÷ 12). Card minimums usually fall as the balance falls; this plan keeps paying the starting minimum, which is what keeps the budget steady. If a minimum is less than the interest on that debt, it would never clear on its own, so the calculator warns you. Amounts are not rounded to cents, so lenders' figures may differ by a few cents. Checked on 10 October 2026.
Common questions
What is the fastest way to pay off debt?
Pay every minimum, put any extra money on one target debt, and roll each cleared debt's payment onto the next. The avalanche method, highest rate first, almost always costs the least interest. In the example, three debts with $200 extra are cleared in 26 months instead of 54 on minimums only, saving $2,094.39.
Is the snowball or avalanche method better?
The avalanche saves the most money; the snowball gives quicker wins. In the example the snowball clears the smallest loan in month 6 instead of month 17, which is why many people find it easier to stick with, but it costs $134.18 more in interest. The best plan is the one you will keep up.
Does a lump-sum payment make a big difference?
Yes, especially early on, because it cuts the balance that interest is charged on for every month that follows. Adding a $1,000 lump sum in month 3 to the example avalanche plan clears the debts in 24 months instead of 26 and cuts the interest from $1,790.03 to $1,474.07.
What is debt roll-over?
When a debt is paid off, its payment moves onto the next debt in your order instead of being spent. That keeps your monthly budget the same and speeds up each payoff. In the example, the avalanche without roll-over takes 30 months and $1,863.08 of interest, against 26 months and $1,790.03 with it.
What if a minimum payment does not cover the interest?
Then that debt would never clear on its own, because its balance grows every month, and the calculator warns you when this happens. Raise the payment on that debt, or put it first in your order so the extra money goes to it straight away.
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Made by Zulu Calculator, part of AlphaZulu LLC. Formulas are shown in full and rule figures are checked against official sources; see how we build calculators.