Debt Payoff Calculator: Create plans to pay off debt efficiently.
The Debt Payment Calculator is a strategic and essential tool for anyone seeking to regain financial control and eliminate outstanding debts. It allows you to create personalized and efficient plans to pay off your debts, whether through the snowball strategy (paying off the smallest ones first) or the avalanche method (prioritizing those with the highest interest rates). By entering your debt details, such as balance, interest rate, and minimum payments, the calculator projects the time and total cost to zero them out, revealing the impact of extra payments and different approaches. For you, Carlos, who values optimization in all areas, this calculator is a powerful guide to transform the debt repayment journey into a clear, motivating, and financially smart path, freeing up resources for other investments and projects.
Debt Payoff Calculator
How to Use
- Add each of your debts with their current balance, annual interest rate (APR), and minimum monthly payment.
- Choose a payoff strategy: Avalanche (highest interest first to save money) or Snowball (smallest balance first for motivation).
- Enter an extra monthly amount you can pay towards your debts to accelerate the process.
- Click "Calculate Plan" to see your detailed payment schedule, payoff date, and total interest savings.
1. Your Debts
2. Payoff Strategy
Glossary
Annual Percentage Rate (APR)
The total interest rate you pay annually on your debt. A higher APR means you pay more in interest over time.
Avalanche Method
A debt payoff strategy where you make minimum payments on all debts, but use any extra money to pay off the debt with the highest interest rate first. This method saves the most money on interest.
Snowball Method
A debt payoff strategy where you make minimum payments on all debts, but use any extra money to pay off the debt with the smallest balance first. This method provides psychological wins, helping you stay motivated.
Principal
The original amount of money you borrowed, not including interest. Your payments go toward both principal and interest.
