Choose Yes to keep your total monthly budget the same: when one debt is paid off, its payment rolls into the next debt, which speeds things up (this is how the snowball and avalanche methods work). Choose No if you plan to stop paying that amount once a debt is cleared, so your total monthly payment shrinks as each debt is paid off.
Your Debt Payoff Summary
What is a debt payoff calculator?
A Debt Payoff Calculator builds a repayment plan for several debts at once, such as credit cards, personal loans, car loans and medical bills. It shows when each debt will be paid off, your overall debt-free date and the total interest you will pay, and it lets you test extra monthly, yearly or one-time payments.
How to use it
- For each debt, enter a name, the remaining balance, the monthly or minimum payment and the interest rate. Use Show more input fields for more debts.
- Add any extra payment: a fixed amount each month, each year, or a one-time lump sum in a chosen month.
- Choose whether to keep your total monthly payment fixed so freed-up payments roll into the remaining debts.
- Click Calculate to see your payoff summary and schedule.
Debt payoff formula
For a single debt, the number of monthly payments is:
n = −ln(1 − r × B ÷ P) ÷ ln(1 + r)
where B is the balance, P is the monthly payment and r is the monthly interest rate (APR ÷ 12). With several debts, the calculator applies this month by month to each one and moves freed-up payments to the next debt when you choose a fixed total.
Snowball vs. avalanche
When you roll payments from one debt to the next, the order matters:
- Debt snowball: pay off the smallest balance first. You clear accounts quickly, which keeps many people motivated.
- Debt avalanche: pay off the highest interest rate first. This usually costs the least interest overall.
Either way, keep making at least the minimum on every other debt. If two plans are close in cost, choose the one you are more likely to stick with.
Example
Suppose you have a $2,000 card at 24%, a $6,000 card at 18% and a $10,000 car loan at 7%, and $800 a month to spend in total. The avalanche order (24%, then 18%, then 7%) clears the costly card debt first and pays the least interest. The snowball order happens to target the same $2,000 card first here, so the two plans start the same way; they differ only when a small balance has a low rate. Enter your own debts to compare the two orders.
How to pay off $30,000 in one year
Dividing $30,000 by 12 gives $2,500 a month before interest. Interest raises the target: at 20% APR, clearing $30,000 in 12 equal payments takes about $2,779 a month, or about $3,350 in interest over the year. If that is more than your budget allows, test 18 or 24 months in the calculator, look for ways to lower the rate, and direct any bonus or tax refund to the balance as a one-time extra payment.
Tips
- List every debt with its exact balance and rate before you start.
- Stop adding new debt while you pay down the old.
- Keep a small emergency fund so a surprise bill does not go on a card.
- Recalculate whenever a balance, rate or your budget changes.
Frequently Asked Questions
It depends on the rate and your payment. At 20% APR, $30,000 is paid off in 12 months at about $2,779 a month, in 24 months at about $1,527 a month and in 36 months at about $1,115 a month.
At 15% APR, $20,000 takes about 12 months at $1,805 a month or about 24 months at $970 a month. Enter your own rate and budget to see your timeline.
The avalanche method (highest rate first) normally saves the most interest. The snowball method (smallest balance first) gives quicker wins. Run both orders in the calculator; if the difference is small, pick the one that will keep you going.
Extra payments can reduce the outstanding principal sooner. A lower principal balance can mean less interest accumulates over time, potentially shortening the overall repayment period.
The snowball method focuses on paying the smallest debt first while maintaining required payments on other debts. It can provide motivation through quick account payoffs, although another strategy may reduce interest costs more effectively.
Disclaimer: This calculator gives estimates for general information only. It is not financial, tax or legal advice. Results depend on the numbers you enter and on simplified assumptions, so your actual figures may differ. Check important decisions with a qualified professional or the official source.
Related Calculators
To compare other ways to tackle debt, try these calculators.