How to Use Our Debt Payoff Calculator
Our debt payoff calculator is designed to give you a clear picture of your financial future. Simply enter your monthly income and expenses, add all your debts (credit cards, loans, etc.), and watch as we calculate your personalized debt-free date.
The calculator works entirely in your browser—no data is sent to any server. Your financial information stays completely private.
Start by entering your debts one by one. For each debt, you'll need the current balance, the annual interest rate (APR), and your minimum monthly payment. Don't worry if you're not sure about some numbers—you can always adjust them later and see how it affects your timeline.
Once you've entered your debts, try adjusting the extra payment slider. This powerful feature shows you how just a small increase in your monthly payment can dramatically reduce your debt-free timeline. For example, adding just $100 extra per month to a $20,000 debt can save you thousands in interest and cut months off your payoff date.
What is the Debt Snowball vs. Debt Avalanche Method?
When paying off multiple debts, you have two main strategies: the Debt Snowball method and the Debt Avalanche method. Both are effective, but they work differently.
The Debt Snowball Method: This approach, popularized by Dave Ramsey, involves paying off your smallest debts first while making minimum payments on all others. Once the smallest debt is paid off, you roll that payment into the next smallest debt. The psychological win of eliminating debts quickly keeps you motivated.
The Debt Avalanche Method: This method focuses on paying off debts with the highest interest rates first. By eliminating high-interest debt first, you save more money on interest over time. It's mathematically optimal, but sometimes requires more patience since the first debt paid off might be your largest balance.
Our calculator lets you compare both methods side-by-side. Try switching between Snowball and Avalanche to see which strategy works best for your situation. Often, the difference in total interest paid can be significant, especially if you have credit cards with high APRs.
Your 3-Step Plan to Get Out of Debt
Getting out of debt might seem overwhelming, but with a clear plan, you can achieve financial freedom. Here's a proven 3-step strategy:
- Know Your Numbers: Use our calculator to see your current debt-free date. This gives you a realistic timeline and helps you set achievable goals. Understanding the total interest you'll pay can be a powerful motivator to increase your payments.
- Choose Your Strategy: Decide whether the Debt Snowball or Debt Avalanche method fits your personality and financial situation. If you need quick wins to stay motivated, go with Snowball. If you want to save the most money, choose Avalanche. You can always adjust later.
- Take Action: Start by increasing your payments on your target debt. Even an extra $50 or $100 per month makes a significant difference. Read our blog posts on how to pay off debt faster and comparing debt payoff methods for more actionable tips.
Remember, getting out of debt is a marathon, not a sprint. Stay consistent, track your progress monthly, and celebrate small wins along the way. Your future self will thank you.