by mrhaseeb

Debt Payoff Calculator

Create a personalized debt repayment plan to become debt-free faster. Our calculator helps you visualize your payoff timeline, save on interest, and choose the best strategy for your financial goals.

Your Debt Details

Enter your debts, monthly payment, and strategy

Name Balance Interest Rate Min. Payment
Total amount you can pay toward debts each month
Method to prioritize which debts to pay off first

Your Debt Payoff Plan

Payoff Time
3.5 years
Total Interest
$4,850
Total Payments
$55,200
Interest Savings
$2,150
Today Mar 2027

Debt Composition

Payoff Timeline

Debt Payoff Sequence

1. Credit Card (18.9%) Paid off in 8 months
2. Car Loan (6.5%) Paid off in 2.5 years
3. Student Loan (4.5%) Paid off in 3.5 years
Total Time to Debt-Free 3.5 years (Mar 2027)

Debt Payoff Strategies & Tips

How Debt Payoff is Calculated

Our calculator uses the debt avalanche and snowball methods to create your personalized payoff plan:

  • Debt Avalanche: Focuses on paying off debts with the highest interest rates first. This method minimizes the total interest paid over time.
  • Debt Snowball: Focuses on paying off the smallest debts first to build momentum. This method provides psychological wins that motivate continued progress.

The calculator considers your total debt balances, interest rates, minimum payments, and your available monthly payment to determine the optimal payoff sequence.

Tips to Become Debt-Free Faster

  • Increase your monthly payment: Even an extra $50-100 per month can significantly reduce your payoff time and interest paid.
  • Consider balance transfers: Transfer high-interest credit card debt to a card with a 0% introductory APR to save on interest.
  • Negotiate lower rates: Contact creditors to request lower interest rates, especially if you have a good payment history.
  • Use windfalls wisely: Apply tax refunds, bonuses, or other unexpected money directly to your debt.
  • Track your progress: Regularly review your payoff plan and celebrate milestones to stay motivated.

Frequently Asked Questions

Which payoff method is better: avalanche or snowball?
Mathematically, the avalanche method saves more money by targeting high-interest debts first. However, the snowball method provides psychological motivation by eliminating smaller debts quickly. Choose the method that best fits your personality and financial situation.
Should I pay off debt or save first?
It's generally recommended to build a small emergency fund ($1,000) before aggressively paying down debt. This prevents you from going further into debt when unexpected expenses arise. Once you have a basic emergency fund, focus on paying off high-interest debt.
How much should I pay toward debt each month?
Aim to pay more than the minimum payments. A good target is 15-20% of your take-home pay. The more you can allocate toward debt repayment, the faster you'll become debt-free and the less interest you'll pay.
What if I have multiple types of debt?
Our calculator handles multiple debt types simultaneously. Enter all your debts (credit cards, loans, etc.) to see how they interact in your payoff plan. The calculator will prioritize them based on your chosen strategy.
How accurate are the payoff estimates?
The estimates are based on the information you provide and assume consistent monthly payments. Actual results may vary if interest rates change, you make additional payments, or your financial situation changes. Recalculate periodically to stay on track.