See how many months it will take to pay off a debt, and how much interest you'll pay along the way.
On high-interest debt like credit cards, a payment close to the minimum can take years to clear and cost more in interest than the original balance. Increasing the monthly payment even modestly often cuts both the payoff time and total interest dramatically.
If you have multiple debts, the 'avalanche' method pays extra toward the highest-interest debt first, minimizing total interest paid mathematically. The 'snowball' method pays off the smallest balance first regardless of rate, building psychological momentum through early wins.
This calculator models a single debt — for multiple debts, run each one separately to compare how prioritization order affects your total interest and timeline under either strategy.
A $5,000 balance at 19.99% APR with a $150/month payment takes about 44 months (3 years, 8 months) to pay off, with roughly $1,626 in total interest — meaning you'd pay about $6,626 total for the original $5,000.
Bump the payment to $250/month instead, and payoff time drops to about 23 months with only around $780 in interest — cutting both the timeline and total interest by more than half with a moderate payment increase.
If you're paying off multiple debts, two common strategies apply: the 'avalanche' method pays off the highest-interest debt first while making minimum payments on others, minimizing total interest paid. The 'snowball' method pays off the smallest balance first regardless of rate, which can build psychological momentum even though it usually costs slightly more in total interest.
This calculator models a single debt, but the underlying math — balance, rate, and payment amount determining payoff time — applies the same way to each individual debt in either strategy.
If your monthly payment is lower than the interest accruing each month, the balance will never be paid off — you'll need to increase the payment above that threshold.
As a general rule, paying off debt with a higher interest rate than your expected investment return tends to provide a better guaranteed outcome, though individual circumstances vary.
Avalanche saves more money mathematically since it targets the highest interest rate first, but snowball's quick wins help many people stay motivated — the best method is the one you'll actually stick with.
Most financial guidance suggests keeping a small emergency fund while aggressively paying down high-interest debt, then shifting focus to savings once high-interest balances are cleared.
Avalanche (highest interest rate first) saves more money mathematically. Snowball (smallest balance first) can be more motivating for some people since it produces quick wins, even at a slightly higher total cost.