Debt Payoff Calculator
Add your debts, choose a strategy, and see your personalized payoff timeline.
Your Debts
Payoff Strategy
Debt-Free Date
April 2031
62 months · 5 years 2 months
Total Paid
$56,601
Total Interest
$8,601
Interest Saved
$9,094
Payoff Order
Credit Card
$8,000 balance · $1,556 interest
20 mo
1y 8m
Auto Loan
$15,000 balance · $1,886 interest
49 mo
4y 1m
Student Loan
$25,000 balance · $5,159 interest
62 mo
5y 2m
With $300/mo extra: You save $9,094 in interest compared to making minimum payments only ($17,695 total interest with minimums only).
Disclaimer
- Assumes fixed interest rates and consistent monthly payments.
- Actual minimum payments may decrease as balances drop (variable minimum).
- Does not account for fees, late charges, or promotional rates.
Two Proven Debt Payoff Strategies
Both the avalanche and snowball methods work — the best one is the one you'll stick with. Here's how they differ:
Debt Avalanche (Mathematically Optimal)
Pay minimums on all debts, then throw every extra dollar at the debt with the highest interest rate. Once that's paid off, roll that payment to the next highest rate. This method saves the most in total interest.
Debt Snowball (Psychologically Motivating)
Pay minimums on all debts, then focus extra payments on the smallest balance first. The quick wins of eliminating small debts create momentum and motivation. Research by behavioral economists shows people are more likely to stick with this method.
Average American Debt
| Debt Type | Average Balance | Average APR |
|---|---|---|
| Credit Cards | $6,500 | 22-28% |
| Student Loans | $37,000 | 5-8% |
| Auto Loans | $24,000 | 5-9% |
| Personal Loans | $10,000 | 10-15% |
How Extra Payments Save Thousands
Even $100-200 extra per month can cut years off your debt timeline and save thousands in interest. The key insight: when you pay extra, the entire extra amount goes toward principal — not interest. This reduces the balance that accrues interest next month, creating a compounding payoff effect.
Should You Pay Off Debt or Invest?
A common rule of thumb: if the debt's interest rate exceeds your expected investment return (historically ~7-10% for stocks), prioritize debt payoff. Credit card debt at 22% should almost always be paid down before investing beyond an employer match. Student loans at 5% are a closer call.
FTC Guide to Getting Out of Debt→Frequently Asked Questions
Which method saves more money?
Avalanche always saves more in total interest because it targets the most expensive debt first. However, the difference can be small if your balances and rates are similar. Use this calculator to compare both methods with your actual numbers.
What about debt consolidation?
Consolidating multiple debts into one lower-rate loan can simplify payments and reduce interest. Balance transfer cards (0% APR promotions), personal loans, and debt management plans are common options. Just avoid running up new balances on the freed-up credit cards.
How does the debt-to-income ratio matter?
Your DTI ratio (monthly debts / gross income) affects mortgage approval, car loans, and credit applications. Lenders prefer DTI under 36%. Paying off debt directly improves your DTI. Use our Home Affordability Calculator to see how debt payments affect what you can borrow.