Debt Payoff Calculator

Create a strategic plan to eliminate all your debts

The Debt Payoff Calculator helps you create a comprehensive strategy to eliminate all types of debt including credit cards, loans, and other obligations. Compare different payoff methods and see how extra payments can accelerate your journey to debt freedom.

Payoff Strategy

Debt Avalanche

Highest interest rate first

Debt Snowball

Smallest balance first

Extra Payment

Extra Monthly Payment ($)

This amount will be applied to the target debt based on your chosen strategy

Your Debts

Debt 1

Debt Name

Debt Type

Balance ($)

Interest Rate (%)

Minimum Payment ($)

Debt 2

Debt Name

Debt Type

Balance ($)

Interest Rate (%)

Minimum Payment ($)

Quick Scenarios

Debt Payoff Analysis

Add your debts to create a payoff strategy

How Debt Payoff Strategies Work

Debt Avalanche Method

How it works: Make minimum payments on all debts, then apply extra money to the debt with the highest interest rate.

Mathematical advantage: Saves the most money by eliminating high-interest debt first.

Best for: People motivated by saving money and comfortable with delayed gratification.

Example: Pay off 24% credit card before 6% student loan, regardless of balance.

Debt Snowball Method

How it works: Make minimum payments on all debts, then apply extra money to the smallest balance first.

Psychological advantage: Quick wins build momentum and motivation to continue.

Best for: People who need psychological wins to stay motivated.

Example: Pay off $500 credit card before $10,000 student loan, regardless of interest rates.

Understanding Different Debt Types

Credit Cards

Typical Rate: 15-25%

Priority: Usually highest

Strategy: Pay off quickly due to high rates

Student Loans

Typical Rate: 3-7%

Priority: Lower (tax deductible)

Strategy: Consider income-driven plans

Auto Loans

Typical Rate: 3-8%

Priority: Medium

Strategy: Consider refinancing if rate is high

Personal Loans

Typical Rate: 6-15%

Priority: Medium-High

Strategy: Fixed payments make planning easier

Mortgages

Typical Rate: 3-7%

Priority: Lowest (tax benefits)

Strategy: Focus on higher-rate debt first

Other Debt

Examples: Medical, family loans

Priority: Varies by rate

Strategy: Negotiate payment plans

Example: Mixed Debt Portfolio

Scenario: $45,000 total debt across multiple types, $400 extra payment

Debt Type	Balance	Rate	Min Payment
Credit Card	$8,000	22.99%	$160
Personal Loan	$12,000	9.99%	$250
Auto Loan	$15,000	5.99%	$290
Student Loan	$10,000	4.99%	$105

Minimum Only

8.5 years

$12,800 interest

Debt Avalanche

4.2 years

$7,200 interest

Debt Snowball

4.5 years

$7,600 interest

Frequently Asked Questions

Should I pay off debt or invest extra money?

Generally, pay off high-interest debt (above 7-8%) before investing. For low-interest debt like mortgages or student loans, investing may provide better returns. Consider your risk tolerance and tax implications.

What about my emergency fund while paying off debt?

Build a small emergency fund ($1,000) first, then focus on debt payoff. Once debt-free, build a full 3-6 month emergency fund. This prevents using credit cards for unexpected expenses.

Should I consolidate my debts?

Debt consolidation can be helpful if you qualify for a lower interest rate and it simplifies payments. However, it doesn't reduce the total amount owed and may extend repayment time if you only make minimum payments.