Debt Payoff Calculator — When Will You Be Debt-Free?

The avalanche method directs extra payments to the debt with the highest interest rate first. Mathematically, this saves the most money over time. The snowball method targets the smallest balance first, regardless of interest rate. You pay off debts faster in number, which provides psychological motivation. Most financial experts recommend avalanche for pure savings, but snowball for people who struggle with motivation.

Debt consolidation combines multiple debts into a single loan, ideally at a lower interest rate. If you have credit card debt at 20%+ APR, a personal loan at 10% APR could cut your interest in half. The key is to not accumulate new debt after consolidating. Use the calculator above to see how much a lower rate would save you, then compare lenders via LendingTree or Credible.

Include any balance you're paying interest on: credit cards, personal loans, auto loans, student loans, medical debt, and HELOCs. You can also include your mortgage, but most people track that separately. Don't include utility bills or recurring expenses — only financed balances with an interest rate.

Any amount helps — even $25/month extra on a $5,000 credit card at 20% APR can cut your payoff time by over a year. The general rule: after building a starter emergency fund ($1,000) and capturing your employer's 401(k) match, direct every available dollar toward your highest-interest debt. Try the extra payment slider above to see the impact.

Compare rates: if your debt APR is higher than your expected investment return (roughly 7–10% for stock market index funds), pay off debt first. High-interest credit card debt at 20% APR is a guaranteed 20% return — better than almost any investment. Low-interest debt (mortgage at 3–4%, student loans at 4–6%) is less urgent; investing may make more sense there.