Debt Payoff Calculator
The calculator below estimates the amount of time required to pay back one or more debts. Additionally, it gives users the most cost-efficient payoff sequence, with the option of adding extra payments. This calculator utilizes the debt avalanche method, considered the most cost-efficient payoff strategy from a financial perspective.
Your Debts
| Debt name | Remaining balance | Monthly or min. payment | Interest rate |
|---|---|---|---|
| % | |||
| % | |||
| % | |||
| % |
Extra Payments
If "Yes" is chosen, after a debt has been paid off, the money that was being paid to that specific debt will be distributed towards paying off remaining debts; the total amount initially allotted to monthly payments will be fixed until all debts are paid off. If "No" is chosen, after a debt is paid off, the monthly payment for that particular debt will not be distributed towards paying off the remaining debts. In this case, the total amount allotted to monthly payments decreases as debts are paid off.
You can pay off your debts in 136 months (11 years and 4 months) by making fixed payments of $2,629.00 every month, of which $100.00 is the extra monthly payment. You will need to pay a total of $356,852.87, of which the total interest is $72,852.91.
Principal vs Interest Distribution
💡 Payoff Strategy (Debt Avalanche):
The most financially feasible method to pay off debts is to start by paying off the highest interest debts first while paying the monthly or minimum payments for the other debts. The following is the payment schedule.
| Debt | Payoff length | Total interest | Total payments | Payment schedule |
|---|
Your Debts Summary
| Debt name | Remaining balance | Monthly or min. payment | Interest rate |
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Frequently Asked Questions
The debt avalanche focuses extra payments on the highest interest rate debt first, while maintaining minimum payments on all other debts. This mathematically minimizes total interest paid.
Example: Credit card at 18.99% gets extra payments until paid, then those payments go to 16.99% card.
Total interest is calculated by summing the interest accrued each month until all debts are paid off.
Impact of Extra Payments: Small extra payments significantly reduce total interest by paying down principal faster.
Debt Avalanche: Focus on highest interest rate debt first
- Mathematically optimal - saves most money
- Takes longer psychologically (biggest debt might be paid last)
- Best for: Motivated individuals focused on minimizing costs
Debt Snowball: Focus on smallest balance debt first
- Provides quick wins and motivation
- Costs slightly more in interest
- Best for: Those needing psychological wins to stay motivated
Extra payments reduce principal faster, which decreases the interest that accrues each month. This creates a compounding effect that significantly shortens payoff time.
- Without extra: 15 years payoff
- With extra: 12 years payoff
- Interest saved: Over $5,000
The larger the extra payments, the more dramatic the savings.
Fixed Total Payment = Yes: Your total monthly payment stays the same. When one debt is paid off, that payment redirects to the next debt.
Fixed Total Payment = No: Your total payment decreases as debts are paid off. You pay less each month but payoff takes longer.
Yes, this calculator supports three types of extra payments:
- Monthly Extra: Same amount every month (e.g., $100/month)
- Yearly Extra: Lump sum once per year (e.g., $1,200 in December)
- One-Time Payment: Single payment in a specific month (e.g., $5,000 in month 5)
You can combine any of these strategies for maximum flexibility.
Each payment is calculated with a formula that determines how much goes to interest vs. principal:
Key Point: As principal decreases, less interest accrues, allowing more of each payment to go toward principal.
Use the minimum payments the calculator suggests, but add extra payments if possible:
- Conservative: Pay minimums only (longest payoff, highest interest)
- Moderate: Add $50-100/month extra (reasonable acceleration)
- Aggressive: Add $200+ extra monthly (fastest payoff, lowest interest)
Even small extra payments make a significant difference over time. Start with what you can afford and increase when possible.