Free Debt Payoff Calculator

Avalanche vs. Snowball: Choosing Your Repayment Strategy

Both strategies cover the minimum payment on every debt, then direct extra money toward one target. Avalanche starts with the highest interest rate to reduce interest costs. Snowball starts with the smallest balance, giving you earlier wins that can help you keep going.

Use the comparison above to see the estimated interest and payoff timeline for each approach with the same monthly budget. Choose a payment amount you can sustain, and keep making the required payments on every account. The CFPB guide to reducing debt explains the tradeoffs between these strategies.

The Invariant Rollover Pool: How Rolled Payments Accelerate Debt Freedom

This calculator uses a 100% rollover pool. Your monthly budget stays equal to your starting minimum payments plus your extra payment. When a debt is paid off, its former payment goes toward the next debt instead of leaving the plan.

For example, if your minimums total $500 and you add $100, the plan keeps applying up to $600 each month until every balance is cleared. Paying off a debt with a $75 minimum frees that $75 for the remaining debts. Any unused payment in the payoff month also rolls forward immediately, so more of the same budget reaches your next target.

Negative Amortization: Escaping the Minimum Payment Trap

A payment that is smaller than the interest added to a balance can leave you owing more after you pay. This is called negative amortization. A payment equal to the interest keeps the balance level but does not reduce the amount you borrowed.

The calculator estimates monthly interest as the balance multiplied by APR divided by 1,200. A $1,000 balance at 24% APR starts with about $20 in monthly interest. A $15 payment falls short; a $20 payment only covers interest. Watch for the calculator's warning and compare a larger payment or a lower rate to see what would let the balance fall.

Frequently Asked Questions

Is the debt payoff calculator free?

Yes. You can compare strategies and recalculate your plan without an account or an email address.

How accurate is my debt-free date?

It is an estimate based on fixed APRs, monthly interest, and the same payment budget each month. New charges, fees, rate changes, and your lender's daily interest calculations can change the actual date and total interest.

Can I compare extra monthly payments?

Yes. Change the extra payment amount and calculate again to compare the timeline and interest. The plan applies that amount every month and rolls paid-off minimums into the remaining debts.

Where are my debt details processed?

Payoff calculations run in your browser. Calculation analytics include the selected strategy, debt count, and total balance, but exclude debt names and individual account details. For private offline planning, see the spreadsheet option below.