Debt Repayment Calculator

Calculate how long it takes to pay off your debts and compare different strategies to save money on interest.

Important Disclaimer: This calculator is for informational purposes only and should not be considered as financial advice. Your actual repayment terms may vary based on your specific agreement with lenders. Consult with a qualified financial advisor before making decisions about debt management.

Your Debts

Debt 1

Your total monthly budget for all debt payments.
Any extra amount you can pay monthly beyond the minimum.
Avalanche saves more money. Snowball provides psychological wins.

Debt Repayment Strategies

Avalanche Method

The Avalanche method prioritizes debts with the highest interest rates first, while making minimum payments on all other debts.

Pros: Mathematically optimal - minimizes the total interest paid and usually results in faster debt payoff.

Best for: Those focused on minimizing cost and who are motivated by financial optimization.

Snowball Method

The Snowball method prioritizes debts with the smallest balances first, while making minimum payments on all other debts.

Pros: Creates psychological wins by clearing individual debts faster, which can help maintain motivation.

Best for: Those who need motivation from quick wins and removing debts one by one.

Tips for Faster Debt Repayment

  • Make more than the minimum payment whenever possible
  • Use windfalls (tax refunds, bonuses, gifts) to make lump sum payments
  • Consider balance transfer offers for high-interest credit card debt
  • Look into debt consolidation if you have many high-interest debts
  • Cut expenses temporarily to increase your debt payment budget
  • Don't take on new debt while paying off existing obligations

About This Calculator

This calculator helps you create a personalized debt repayment plan and compare different strategies to become debt-free faster and save money on interest.

What's Included

  • Support for multiple debts with different balances, interest rates, and minimum payments
  • Comparison of Avalanche (highest-interest-first) and Snowball (smallest-balance-first) strategies
  • Analysis of how extra payments impact your debt-free timeline and interest savings
  • Detailed payment schedule showing how each debt is paid down over time
  • Visual chart of your debt reduction journey

How It Works

The calculator uses standard debt amortization formulas and applies them according to your chosen repayment strategy:

  1. All debts receive at least their minimum payments each month
  2. Any remaining amount from your total monthly payment is allocated to the priority debt based on your chosen strategy
  3. Once a debt is paid off, its payment amount is redirected to the next priority debt
  4. This process continues until all debts are paid in full

The calculator assumes fixed interest rates and that you do not add new debt during the repayment period. Actual results may vary based on your specific loan terms, payment timing, and other factors.