Debt Payoff Calculator
Add your debts, choose a payoff strategy, and see exactly how many months it takes to become debt-free and how much interest you'll pay.
Above the minimums
Time to be debt-free
42 months
What Your Result Means
The payoff order shows which debt gets extra payments first under your chosen strategy. Snowball pays off the smallest balance first for quick psychological wins; avalanche targets the highest interest rate first to minimize total interest paid.
How It Is Calculated
Calqora simulates your debts month by month: minimum payments go to every debt, interest accrues on each balance, and any extra payment is applied entirely to your priority debt (smallest balance for snowball, highest APR for avalanche) until it's paid off - then the extra rolls to the next debt.
Worked Example
A $4,000 credit card at 22% APR and a $12,000 car loan at 6% APR, with $150 extra per month using avalanche, targets the credit card first since it has the higher rate - typically saving more in total interest than snowball, though snowball often feels more motivating.
Important Assumptions
- Assumes no new charges are added to any debt during payoff.
- Assumes minimum payments and extra payments are made consistently every month.
Frequently Asked Questions
- Which strategy is better, snowball or avalanche?
- Avalanche minimizes total interest paid mathematically. Snowball often keeps people more motivated by eliminating smaller debts faster - the 'best' method is the one you'll actually stick with.
- What if I can't afford the minimum payments?
- This calculator assumes minimums are affordable. If you're struggling to make minimum payments, consider speaking with a nonprofit credit counseling service.
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Debt-to-Income Ratio Calculator
Calculate your debt-to-income (DTI) ratio, a key number lenders use to evaluate loan applications.
Methodology
This calculator runs a month-by-month simulation of interest accrual and payments. See our methodology page for details.
This calculator provides estimates for educational purposes only. Actual rates, taxes, insurance, fees, and lender terms may differ. It does not constitute financial advice - consult a qualified financial professional before making financial decisions.