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Debt Payoff Planner

Plan your debt repayment strategy

Total Debt ($)

Average Interest (%)

Monthly Payment ($)

Payoff Method

Debt Payoff Formulas

Monthly Interest = Balance × (Rate / 12)

Principal Payment = Monthly Payment - Interest

Time to Payoff = -log(1 - (r×P)/M) / (12×log(1+r))

Total Interest = (M × n) - P

Use this planner to determine how long it will take to become debt-free and how much interest you'll pay.

⚠ These are estimates based on fixed payments. Interest rates may vary and additional fees may apply.

Avalanche vs Snowball Method

Two popular debt payoff strategies with different psychological and financial benefits:

Avalanche Method

Pay highest interest debts first. Saves more money on interest. Best for mathematically optimal results.

Snowball Method

Pay smallest debts first. Builds motivation through quick wins. Best for psychological momentum.

Which to Choose?

Choose avalanche if you want to save money. Choose snowball if you need motivation to stay on track.

Hybrid Approach

Start with snowball for quick wins, then switch to avalanche for maximum savings.

Example: $25,000 debt at 15% interest with $500 monthly payment. Time to payoff: ~6.5 years. Total interest: ~$13,000.

Applications

Debt Management Financial Planning Budgeting Credit Cards Personal Loans

Frequently Asked Questions

Avalanche vs snowball method?▼

Avalanche: Pay highest interest first (saves more money). Snowball: Pay smallest balance first (builds momentum). Choose based on your motivation style.

How to pay off debt faster?▼

Make extra payments, refinance to lower rate, cut expenses, increase income, and use windfalls to pay down principal.

Should I pay off debt or invest?▼

If debt interest > investment returns, pay debt first. If investment returns > debt interest, invest. Emergency fund always comes first.

What is a good debt-to-income ratio?▼

Total debt payments should be ≤ 36% of gross income. Housing + debt should not exceed 43%. Lower is better.

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