Tools Debt Payoff Planner
When will you be debt-free?
List your debts and what you can pay each month. The planner runs two proven methods month by month: avalanche (highest interest rate first) and snowball (smallest balance first). It shows your debt-free date, the total interest, and the order to pay them off.
Your plan
Avalanche order
Snowball order
What to focus on next
How this planner works
Each month: add interest, pay every minimum, send the rest to the debt at the top of your order
You set one monthly budget: all your minimum payments plus any extra. When a debt is paid off, its minimum stays in the budget and rolls into the next debt. This rollover is what makes both methods faster than paying minimums alone.
- Avalanche targets the highest interest rate first. It always costs the least interest.
- Snowball targets the smallest balance first. You clear whole debts sooner, and those early wins keep many people going.
Interest is charged monthly at the APR ÷ 12. Real statements vary a little with billing cycles and fees, and the plan assumes no new borrowing.
Words you’ll see
- APR
- Annual percentage rate: the yearly cost of borrowing. Card statements list it; monthly interest is roughly APR ÷ 12.
- Minimum payment
- The least you must pay each month to stay current. On high-rate debt, paying only this can take decades.
- Avalanche method
- Paying extra toward the highest-rate debt first. Mathematically the cheapest.
- Snowball method
- Paying extra toward the smallest balance first, for quick wins that build momentum.
- Rollover
- Moving a paid-off debt’s payment to the next debt instead of spending it.
Common questions
Is the debt snowball or avalanche method better?
The avalanche method, paying the highest interest rate first, costs the least total interest. The snowball method, paying the smallest balance first, clears whole debts sooner, and those early wins help many people stick with the plan. If the interest difference is small, pick the one you will keep doing.
What is the debt avalanche method?
You pay the minimum on every debt and send every extra dollar to the debt with the highest interest rate. When it is paid off, its whole payment rolls into the next-highest rate, so the amount you pay each month never shrinks.
What is the debt snowball method?
You pay the minimum on every debt and send every extra dollar to the debt with the smallest balance, whatever its rate. Each time one is paid off, its payment rolls into the next-smallest balance, so the payments grow like a snowball.
How long will it take to pay off my debt?
It depends on your balances, interest rates and what you pay each month, which is why this planner runs the numbers month by month. For example, $42,500 across a credit card, a car loan and a student loan, paid at $1,050 a month, is cleared in about 4 years with $6,272 in interest. Paying only the $750 in minimums would take 10 years and cost $14,598.
Why does paying only the minimum take so long?
On high-rate debt, much of each minimum payment goes to interest. A $6,500 credit card balance at 24.99% APR paid at a fixed $180 a month takes 5 years and 8 months and costs $5,678 in interest. Adding $200 a month clears it in 22 months for $1,620.
Sources
- What is a credit card interest rate? What does APR mean?, Consumer Financial Protection Bureau
- Can Small Victories Help Win the War? Evidence from Consumer Debt Management, David Gal and Blakeley B. McShane, Journal of Marketing Research, 2012
This tool is for informational and educational purposes only. It is not financial, tax, or legal advice. Consult a qualified professional for guidance specific to your situation.