Debt Payoff Calculator
Plan payoff date, interest cost, and savings using Snowball or Avalanche + extra payments.
⚠️ Educational estimate only. Real lender statements may include fees, compounding rules, and billing-cycle differences.
How Debt Payoff Works
Debt payoff depends on three main things: your current balance, the interest rate, and how much you pay each month. When you pay more than the interest due, the remaining amount reduces your principal. Over time, the interest portion shrinks.
Avalanche is usually the fastest way to reduce total interest (highest rate first). Snowball can feel easier to stick with because you clear smaller balances earlier. This calculator models the payoff timeline and compares interest costs with and without extra payments.
Formula
Monthly interest = balance * (APR/100) / 12 New balance = balance + interest - payment
FAQs
Snowball vs avalanche?
Snowball focuses on smallest balance first. Avalanche targets highest interest first and usually saves more interest.
What if my payment is too low?
If your monthly payment is less than monthly interest, your balance can grow (negative amortization).
Does extra payment always help?
Yes — extra payment reduces principal faster and lowers future interest.
Should I consolidate?
Consolidation can simplify payments, but compare interest rates and fees carefully.