Debt Payoff Calculator
This calculator helps you find the best strategy for paying off your debts.
1. List Your Debts:Use the "Add Debt" button to list all your debts. For each one, enter the current balance, the annual interest rate (APR), and the required minimum monthly payment.
2. Add Extra Payments:In the "Payoff Strategy" section, enter any extra amount you can afford to pay each month. This is the key to accelerating your debt payoff.
3. Calculate:The calculator will run a simulation for both the Debt Avalanche and Debt Snowball methods and show you which is better for your situation.
- Debt Avalanche: Focuses extra payments on the debt with the highest interest rate first. This method always saves the most money on interest.
- Debt Snowball: Focuses extra payments on the debt with the smallest balance first. This method provides quick psychological wins that can help with motivation.
The calculations are estimates based on the data you provide. They assume fixed interest rates and do not account for late fees or other charges. This is not financial advice.
Compare the Snowball and Avalanche methods to become debt-free.