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Add your debts to compare snowball and avalanche.

How to Use the Early Debt Payoff Calculator

Follow these steps to get your debt repayment estimates.

1

Add Your Debts

Select the debt type and enter your APR, outstanding balance, and current minimum payment. You can find these details in your latest billing statement or online account. Our calculator allows you to add up to 20 debts at once.

2

Choose a Payment Amount or a Target Date

If you know what amount you can comfortably pay on top of your minimum payment, enter it in the “I know what I can pay” section. If you want to know what your monthly payment should be so you can become debt-free by a specific date, enter the month and year in the “I have a target date” section.

3

Add Extra Payments (Optional)

Choose “More options” and enter an extra one-time payment with the month when you will make it. These may include tax refunds, work bonuses, or freelance windfalls.

How to Read Your Results

This multiple debt payoff calculator can help you estimate when you will repay your debt and how much you can save by paying more than the minimum using a snowball or avalanche method. Once you enter all information, you will see “Snowball” and “Avalanche” sections that show the repayment order for each strategy, a balance chart, and a month-by-month table (collapsed by default).

Here’s what you should look at:

  • Debt-free date. See how long it will take to pay off the debt by increasing your loan payment compared to the “Minimums Only” baseline scenario. Check what strategy (snowball or avalanche) works best for your target date.
  • Total interest. Check what your total interest amount will be based on the scenario you choose (increased loan payments or a specific target date) and see how both strategies affect it.
  • Interest saved. Compare total interest amounts after increasing your payments with what you will pay if you make only minimum payments.
  • Payoff order, balance chart, and payment schedule. This section shows which debts to pay off first, your outstanding balance after each payment, and when your credit card or loan payments are due, helping you choose the strategy that best fits your current financial situation.

Debt Snowball vs. Debt Avalanche

Both snowball and avalanche methods can help you get out of debt, but they target debts in different orders, which affects payoff speed, total interest, and your motivation.

What Is the Debt Snowball Method?

The debt snowball method targets the smallest loan balances first, without focusing on interest rates. Once you pay off the smallest balance, you move to the next smallest loan and pay the minimum on all your debts while putting the amount you were paying on the first loan toward the next smallest balance.

This method gives you psychological wins and helps you stay motivated as you see zero balances faster. The drawback is that it can take slightly longer to become debt-free, and you are likely to pay more in interest if your high-interest debts carry the highest balances.

What Is the Debt Avalanche Method?

With the debt avalanche method, you pay down debts from the highest interest rate to the lowest. As with the snowball method, once you pay off a loan, you keep paying the minimum on all accounts and roll extra cash into the next highest-interest debt.

While it may take longer to see progress, the avalanche method can save you money on interest if there’s a meaningful difference in your loan interest rates. It may also help you become debt-free faster.

Representative Examples

Suppose you have three active debts:

Balance Interest Rate Minimum Payment
Loan 1 $10,000 12% $333
Loan 2 $5,000 8% $101
Loan 3 $20,000 21% $550

Your total debt is $35,000, and your total minimum monthly payments are $984. Say you can pay an extra $100 per month toward your debts after making the minimum payments.

Let’s see how fast you will repay the debt and how much you will pay in interest with each strategy:

Snowball Avalanche Minimums Only
Total Interest $12,928.85 $11,772.48 $15,118.04
Time to Pay Off 45 months 44 months 61 months
First Win Loan 2 (28 months) Loan 1 (36 months) Loan 1 (36 months)

Note: For illustrative purposes only. These calculations assume your interest rate and the minimum required payment don’t change (except for when you put more money toward the next loan once you repaid the previous one).

Which One Should You Choose?

The snowball method works best for people who need early motivation and visible progress to stay committed. This strategy also suits situations where all your loans are similar or have low interest rates. The avalanche method may suit people with high-interest loans who are disciplined enough to go without early motivation.

How Long Will It Take to Pay Off Your Debt?

The exact time it will take you to reach debt freedom depends on your discipline and the strategy you choose. When you pay only the minimum, most of your payment goes toward interest at first. With a credit card, interest compounds daily and applies to an outstanding balance that barely decreases. As you slowly pay down your debt, the minimum payment, which is typically calculated as a percentage of your current balance, decreases as your balance falls. That means you end up paying less toward the debt over time unless you keep paying the same amount.

When you make extra payments, they go directly toward your principal. This lowers the base for interest calculation and reduces the total number of months it will take you to reach a zero balance. If you also use a debt snowball or debt avalanche strategy, you speed things up by redirecting the extra cash freed up from a paid-off loan toward your next debt.

How Credit Card Interest Is Calculated

Credit card interest is calculated daily based on your APR and average daily balance. Here’s how it works:

  • Find your daily periodic rate (DPR) by dividing your APR by 365 or 360, depending on the credit card company. For a 21% APR and a 365-day calculation, your DPR will be 0.0575%.

  • Sum your daily balances over the billing cycle and divide the result by the number of days to calculate your average daily balance (ADB).

  • Calculate your daily interest by multiplying DPR by ADB. Say your ADB is $100. Your daily interest is calculated as follows: 0.0575% x $100 = $0.0575.

  • Multiply your daily interest by the number of days in a billing cycle. For a 31-day cycle, your monthly total will be: $0.0575 x 31 = $1.78.

Short-Term and Payday Loans: Why They Work Differently

Short-term loans are designed primarily for emergency expenses and temporary cash shortfalls. Installment loans have repayment periods of 2–24 months so you can meet larger needs while keeping payments within your means. Payday loans need to be repaid in full by your next paycheck. Both options are available to borrowers with less-than-perfect credit but often carry high APRs, making them more difficult to manage.

A typical payday loan costs around $10–$30 for each $100 borrowed, which translates to an APR of 260%–782% (average of 391%). Their availability and terms vary by state. Installment loans often have APRs between 16% and 200%. Although they offer more flexibility, longer repayment terms and high APRs can lead to significant interest accumulation over time. That means you should use these high-interest loans only as a last resort and prioritize paying them off early.

Other Ways to Pay Off Debt

Besides the strategies discussed above, you can also take other steps to get out of debt faster.

Balance Transfers

If you have a credit card with a 0% APR promotional period, transferring your high-interest credit card debt to it can be a smart move. During the interest-free period, your monthly payments go directly toward principal, allowing you to pay off your debt over a shorter period without increasing payments. However, many credit card companies charge balance transfer fees of 3%–5%, so make sure the interest saved outweighs these costs.

Debt Consolidation Loans

A debt consolidation loan is a personal loan that lets you combine multiple debts into one payment. This option can work if your credit has improved since you took out your current loans, so you can qualify for a new loan with more favorable terms. With a debt consolidation loan, your lender transfers money directly to creditors and often offers interest discounts for it. This strategy lets you either reduce your monthly payments or pay off debt faster without increasing the payment amount.

Nonprofit Credit Counseling and Debt Management Plans

If you struggle to manage your debts on your own, a professional can help you create an effective debt management plan for your situation. The National Foundation for Credit Counseling provides free or low-cost assistance through certified specialists. A credit counselor can review your income, expenses, and debts and build a personalized plan that focuses on your financial goals. They can also negotiate with your creditors to reduce current loan interest rates or waive fees to make debts more manageable for you.

Debt Settlement

Debt settlement may be an option for borrowers with unsecured debts. It involves negotiating with your creditors to pay a fraction of your balance (often 10%–70%) in one lump sum to resolve the debt. Be cautious with third-party settlement companies. Federal law prohibits them from charging fees until they actually settle a debt. Settlement typically requires you to stop paying, damaging your credit during negotiations.

While this is entirely at the creditor’s discretion, they may meet you halfway, especially if your account is already significantly past due (90 days or more). Always get an agreement in writing before paying anything. Keep in mind that any forgiven amount may be taxable.

Bankruptcy: Chapter 7 vs. Chapter 13

Bankruptcy is a last-resort option for people whose debts heavily outpace their income. Although it can give you a fresh start, not all debts can be discharged, and you may need to liquidate non-exempt assets first. On top of that, bankruptcy can affect your credit score for years, making it harder to qualify for loans.

When it comes to overwhelming consumer debt, two major types of bankruptcy exist: Chapter 7 and Chapter 13. Chapter 7 requires you to sell nonexempt assets to pay what you can and discharge the rest. Assets like your primary residence, primary vehicle, basic furniture, everyday appliances, retirement accounts, and public benefits are typically exempt, but the types and amounts can vary by state. A court-appointed trustee will manage the assessment, liquidation, and repayment. The entire process typically takes around 4–6 months. Chapter 7 stays on your credit report for 10 years from the filing date.

Chapter 13 bankruptcy is also known as reorganization. It restructures your debts into more manageable monthly installment payment plans for 3–5 years. You keep your assets as long as you follow the agreed-upon repayment schedule. This bankruptcy remains on your credit report for 7 years from the filing date.

Bankruptcy does not wipe out certain obligations, such as student loans, child support, alimony, or recent tax debts.

Frequently Asked Questions

What is the best way to get out of debt?

The best way to become debt-free is to stop adding new debt, pay more than the minimum, and use freed-up cash toward the next loan instead of pocketing or spending the funds. Depending on your current debt balances and APRs, choose between the debt snowball and debt avalanche strategies.

Does credit card debt affect my credit score?

Credit card debt affects your credit score by increasing or reducing your credit utilization ratio. This factor makes up about 30% of your FICO credit score. It shows what portion of your available revolving credit you are currently using. A high credit utilization ratio (generally above 30%) can signal financial strain and elevated risk.

What factors affect my credit card debt?

Your current balance, APR, monthly payment, target payoff date, fees, and credit card usage are among the biggest factors affecting your credit card debt.

Which loan type should I pay off first?

It depends on your motivation, discipline, and loan terms. Paying off debts from the highest APR to the lowest can potentially save you money on interest. However, this strategy will not work if all your debts are similar, and it will take you longer to see progress. Starting with the lowest balance can build psychological momentum but may cost more in interest if your highest-balance loan has the highest APR.

How are credit card payments calculated?

Credit card companies use different methods to calculate your minimum payments. Some use a flat percentage method, say, 2%–4% of your total statement balance. Others take a lower percentage of your balance and add the actual amount of any interest and fees accrued during the billing cycle. In some cases, credit card companies may charge a minimum floor amount (typically flat, for example $25 or $35) if your calculated percentage is very low.

Is declaring bankruptcy a good idea?

Bankruptcy can provide financial relief if your income is much lower than your current unsecured debts and you can’t realistically make payments within a few years. However, filing bankruptcy has severe consequences. You may have to liquidate non-exempt property or commit to a repayment plan for 3–5 years. Bankruptcy also stays on your credit report for 7 or 10 years, depending on its type.