Paying off several debts can feel overwhelming, but a clear plan helps. This free debt payoff calculator builds a month-by-month plan for up to five debts using the avalanche method (highest interest first) or the snowball method (smallest balance first). It shows your debt-free date, total interest and how much you save compared with paying only the minimums.
How to use:
- Choose your currency and payoff method.
- Enter how much extra you can pay each month.
- Enter each debt’s balance, interest rate and minimum payment.
- Click Make my payoff plan to see the date, interest saved and payoff order.
FAQs:
Q: What is the debt avalanche method?
A: You pay minimums on every debt, then put all extra money on the debt with the highest interest rate. It usually saves the most interest.
Q: What is the debt snowball method?
A: You focus extra money on the smallest balance first. Clearing debts quickly can keep you motivated, though it may cost a little more interest.
Q: What happens when a debt is paid off?
A: Its payment rolls into the next debt, so your total monthly payment stays the same and the payoff speeds up.
