Our Debt Payoff Calculator helps estimate the time required to pay off debts and suggests the most cost-efficient payoff sequence, incorporating the option to make extra payments. It utilizes the debt avalanche method, recognized for its financial efficiency in minimizing overall interest costs.


Debt name Current Balance Min Payment
$ $ %
$ $ %
$ $ %
Payoff Budget
Remaining Monthly
Total Result:
Total Interest:
Payoff Date:


Debt Payoff Calculator Terms & Definitions

Debt – Money that is owed or due. Balance Owed – The remaining amount of your debt that you need to pay. Annual Interest Rate (APR) – Also known as the annual percentage rate, it is the interest rate applied to your credit card purchases that were not paid in full each month. Payoff Date – The date you set for completely paying off your debts. Monthly Payment Needed – The amount of money you need to allocate to pay off your debts based on your goal date. Interest – The amount paid for borrowing money. Principal – The original amount of money borrowed, not including interest. Be aware that when interest compounds, interest is then added to that principal increasing the balance owed.

How to Pay Off Debts Early?

Paying off debts early requires financial discipline and proactive steps, including budget creation, expense reduction, selling unused items, and lifestyle adjustments. To effectively tackle debts, borrowers can employ different strategies:Debt Avalanche: This method prioritizes paying off debts with the highest interest rates first, minimizing total interest costs. It's like an avalanche, with high-interest debts falling first, followed by the next highest interest debt. For instance, a credit card with 18% interest takes precedence over a 5% mortgage. The Debt Payoff Calculator employs this strategy, listing debts from highest to lowest interest rates.Debt Snowball: In contrast, the debt snowball method begins with the smallest debt, regardless of the interest rate. As smaller debts are paid off, the payments are redirected to the next smallest debt. While it may result in slightly more interest paid, the psychological boost of clearing smaller debts can boost motivation. This method fosters confidence and helps borrowers stay committed to repayment.Debt Consolidation: Debt consolidation entails obtaining a single, larger loan (e.g., home equity loan, personal loan, or balance-transfer credit card) to pay off all existing smaller debts. It's particularly useful for high-interest debts like credit card balances, often reducing monthly payments and simplifying the repayment process by consolidating multiple debts into one.Selecting the most suitable strategy depends on individual financial situations and preferences, with each approach offering distinct advantages.