How the payoff plan is calculated
Every month each debt gets interest equal to its balance times its APR divided by 12. You then pay the minimum on every debt. Any extra money, plus the minimums freed up from debts you have already cleared, goes to one target debt. When that debt is paid off, its payment rolls into the next one. The calculator repeats this month by month until every balance is zero, then reports how many months it took and the total interest you paid.
Avalanche versus snowball
The avalanche method targets the debt with the highest interest rate first. It minimises total interest, so it is the cheapest choice on paper. The snowball method targets the smallest balance first. It may cost a little more interest but delivers quick wins as accounts close, and many people find that motivation helps them keep going. Switch the order selector to compare both on your own numbers. If your highest-rate debt also has the smallest balance, the two methods give identical results.
Entering your debts
- Use commas between the four values and put each debt on its own line, for example
Visa, 2400, 19.99, 70. - APR means annual percentage rate. Enter it as a plain number, not a decimal fraction.
- The minimum payment must be larger than the first month's interest, or the balance will never fall without extra money.
What the comparison line shows
If you enter an extra payment, the tool also runs the same debts with no extra money and shows how many months and how much interest you save. Minimums from cleared debts still roll over in both runs, so the figure shows the effect of your additional payment only.
Limits to remember
This is a simplified model. It assumes fixed APRs, no new purchases, no late fees and interest compounded monthly on the balance. Real credit cards calculate interest daily and their minimum payments often shrink as the balance falls. Promotional 0% rates, penalty rates and balance transfer fees are not modelled. Use the plan as a planning guide and check your lender's statement for exact payoff figures. The data you type stays in your browser.