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Debt payoff calculator

Money & finance

How fast can you pay off all your debts?

See when you are debt-free and what the interest costs, paying the highest rate or the smallest debt first.

€

Extra money goes first to

Your debts

  1. Debt 1

    €

    %

    €

  2. Debt 2

    €

    %

    €

  3. Debt 3

    €

    %

    €

The minimums add up to €300.00; €200.00 a month goes to the target debt.

Debt-free in

2 years, 2 months

€1,191.09 in interest, €93.32 less than the other order.

What the calculation assumes

Assumes fixed minimums, no new borrowing or fees, and interest of the yearly rate ÷ 12 on each month's balance. A paid-off debt's payment moves to the next one.

Avalanche: highest rate first

Debt-free in
2 years, 2 months
Interest paid
Lowest €1,191.09
First debt paid off in
11 months

Snowball: smallest debt first

Debt-free in
2 years, 2 months
Interest paid
€1,284.41
First debt paid off in
Lowest 6 months

Interest paid so far

Interest paid up to each month: €1,191.09 in total with the avalanche, €1,284.41 with the snowball.

  • Avalanche: highest rate first
  • Snowball: smallest debt first

Payoff order

Payoff order
DebtRate per yearPaid off inInterest paid
Debt 122%11 months€275.90
Debt 312%1 year, 2 months€131.10
Debt 27%2 years, 2 months€784.09

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See when you are debt-free and what the interest costs, paying the highest rate or the smallest debt first.

How to use

  1. Enter how much you can pay toward all your debts each month.
  2. List each debt with what you owe, its yearly interest rate and its minimum monthly payment.
  3. Choose which debt gets the extra money first, then compare both orders: the debt-free date, the interest and the order the debts end.

How it works

You pay the minimum on every debt and put everything left of your monthly budget on one target debt. When it is paid off, its whole payment moves to the next target, so the amount working on your debts never shrinks. The avalanche targets the highest interest rate first; the snowball targets the smallest balance first.

Each month a debt charges I = B × r / 12, where B is its balance and r its yearly rate. The avalanche always cuts the most expensive interest, so it costs the least in total. The snowball clears small debts sooner, which some people find easier to keep up.

The two methods are described by the US Consumer Financial Protection Bureau in its guidance on reducing debt. The calculation assumes fixed minimums, no new borrowing or fees, and interest rounded to the cent each month; your lenders' statements decide the real amounts.

Worked example

How long to clear €1,800.00 in interest-free debts with a €300.00 monthly budget?

  1. €600.00 + €1,200.00 = €1,800.00.
  2. €1,800.00 ÷ €300.00 = 6.

6 months with either order, with €50.00 minimum on each debt and no new fees or borrowing.

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Frequently asked questions

Which method is better, avalanche or snowball?

The avalanche costs the least interest. The snowball pays off your first debt sooner, which can help you stay motivated. If the difference shown is small, pick the one you will stick with.

What if my budget is less than the minimum payments?

The plan needs at least every minimum payment. The calculator says so under the amount; talk to your lenders or a debt adviser if you cannot cover the minimums.

Can I add a credit card with a changing minimum?

Enter its current minimum as a fixed amount. Keeping the same payment as the balance falls repays faster than paying a shrinking minimum.

What happens to a payment when one debt ends?

It stays in the monthly budget and goes toward the remaining debts. Lowering the budget would change the plan.

Can I model an interest-free debt?

Yes. Set its rate to zero and enter its balance and minimum payment. The plan assumes the zero rate continues.

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