{{ summaryHeading }} {{ summaryPrimary }} {{ summaryLine }} {{ badge.label }} {{ badge.value }}
Enter the current balance, yearly APR, and required monthly payment for each account.
DebtBalance ($)APR (%)Minimum ($)Remove
{{ strategyHelp }}
Required payments total {{ formatMoney(totalMinimumInput) }} before this extra amount.
$
Zero keeps the recurring extra payment unchanged.
% / year
Zero leaves the base monthly plan unchanged.
$
The annual amount joins the payment budget in this month.
Zero uses the exact recurring extra payment.
$
MonthPaymentPrincipalInterestBalanceCopy
{{ row.label }}{{ formatMoney(row.payment) }}{{ formatMoney(row.principal) }}{{ formatMoney(row.interest) }}{{ formatMoney(row.balance) }}

Plan review

Modeled commitment

{{ metric.label }}{{ metric.value }}{{ metric.note }}

Payoff order

  1. {{ name }}

Before acting on the plan

  • Confirm current balances, APRs, and required payments against each lender statement.
  • This model uses monthly interest and fixed rates; lenders may use daily balances, fees, penalties, or changing rates.
  • Keep required payments active on every account and treat the strategy result as an educational planning comparison, not financial advice.
Car Loan Calculator Estimate a car loan payment and payoff from deal terms including trade equity and financed charges, then compare interest and total payments.
Credit Card Calculator Estimate credit card payoff time or solve a target payment from balance and APR, with new charges, lump sums and promotional-rate periods.
Monthly Budget Calculator Plan a monthly budget from take-home income, compare needs, wants and goals with three guides and check your cushion and emergency runway.
Mortgage Calculator Estimate a fixed-rate mortgage payment, cash to close and full payoff schedule with escrow, PMI and extra-principal interest savings.

A debt payoff plan turns several account balances into one repeated monthly budget. Every active debt receives its required payment, then the remaining money goes to a selected target. When one balance reaches zero, the amount that had been supporting it stays in the budget and moves to the debts that remain.

The target order changes the experience and cost of repayment. The avalanche method directs extra money to the highest annual percentage rate (APR), which generally attacks the costliest balance first. The snowball method targets the smallest balance, often producing an earlier account payoff but sometimes more interest. Largest-balance and highest-minimum strategies answer different cash-flow priorities rather than promising the lowest cost.

StrategyExtra payment targetsUseful when
AvalancheHighest APR firstReducing modeled interest is the main objective.
SnowballSmallest balance firstAn earlier closed account supports motivation or simplifies bills.
Largest balanceHighest balance firstThe largest obligation is the chosen priority.
Highest minimumLargest required payment firstReleasing a large monthly obligation is the chosen priority.

APR is only one part of a real account agreement. Credit cards commonly calculate interest from daily balances, while loans may use different compounding, payment-allocation, fee, and payoff rules. Promotional rates, deferred interest, late fees, variable rates, and prepayment terms can make a statement balance behave differently from a simple monthly model.

A useful plan must also fit the household budget. Sending every spare dollar to debt can leave no cash for food, housing, insurance, taxes, emergencies, or required savings. Treat the payoff month and interest estimate as a scenario to compare with statements and lender payoff information, not as a promise or individualized financial advice.

How to Use This Tool:

Build the plan from current statements, then test one affordable extra-payment policy at a time.

  1. Enter each debt's name, balance, APR, and minimum payment. Use the same statement date where possible so the balances form one consistent starting point.
  2. Choose the First payment month and Payoff strategy. Avalanche and snowball are the clearest cost-versus-milestone comparison; the other strategies prioritize balance size or required payment.
  3. Set the Monthly extra payment. Add annual growth, an annual lump sum, or upward rounding only when those amounts are realistic and repeatable.
  4. Review Debt-free month, Total interest, and Payoff timeline. If the budget does not cover modeled monthly interest or cannot finish within 600 months, increase payments or correct the account data.
  5. Compare Strategy interest with the selected plan, then confirm the first target and payment budget against actual creditor rules before making changes.

Interpreting Results:

Months to payoff and Debt-free month describe the selected strategy and payment policy. Interest saved and Months saved compare that scenario with a baseline that keeps the original required-payment budget but removes extra payments, annual growth, lump sums, and upward rounding.

  • Use Monthly budget as the regular first-year commitment before any lump sum. Annual growth and the selected bonus month can make individual months higher.
  • Check Payoff order because ties and changing balances can affect which account closes first.
  • Compare strategies only with the same debts and payment policy. Changing the extra amount at the same time hides the effect of target order.
  • Rebuild the plan after a rate change, fee, new charge, missed payment, refinance, or creditor adjustment.

Technical Details:

The repayment model advances one month at a time using US dollars and cent-level arithmetic. Interest is added before payments. Every active debt receives up to its required minimum, and the rest of the fixed required-payment budget plus any extra or lump sum is directed according to the selected strategy.

Formula Core:

For debt j in month t, monthly interest is the opening balance multiplied by APR divided by 12. The result is rounded to the nearest cent before it is added to the balance.

Jj,t =roundCent( Bj,t ×rj12×100)

B is the opening balance in dollars, r is APR in percent, and J is the month's interest. After interest is added, payments reduce the balance but never below zero.

Bj,t+1 =max(0, Bj,t+ Jj,t− Pj,t)

Payment and priority rules:

OrderRule
1Round each active debt's monthly interest to cents and add it to that balance.
2Build the available budget from all original minimums, the current month's extra, and any lump sum due that month.
3Pay each active debt up to its minimum, remaining balance, or remaining budget.
4Send all remaining budget to the highest-priority active debt, then continue to the next target if that balance reaches zero.
5Stop when every balance is zero, when principal fails to decline, or after 600 modeled months.

Extra payment growth steps once every 12 modeled months. If the starting extra is E and the annual growth rate is g percent, year y uses E × (1 + g/100)y, rounded to cents. When an upward increment is selected, that amount is rounded up to the next whole increment after annual growth. The annual lump sum is added in its selected calendar month.

Strategy tie-breaking:

StrategyPrimary orderTie-breakers
AvalancheHigher APRSmaller balance, then entered order
SnowballSmaller balanceHigher APR, then entered order
Largest balanceLarger balanceHigher APR, then entered order
Highest minimumLarger minimumHigher APR, then entered order

The model accepts one to eight debts. Balances and minimums must be from $0.01 to $100,000,000, APR from 0% to 1,000%, and the start month from 2000 through 2200. These wide validation limits prevent malformed input; they are not recommendations.

Responsible Use and Accuracy Notes:

This is an educational planning estimate, not financial advice or a lender payoff quote. The monthly APR/12 model does not reproduce daily-balance interest, statement-cycle timing, fees, variable rates, promotional terms, deferred interest, taxes, or creditor-specific payment allocation.

  • Keep required payments current on every account regardless of the selected target.
  • Confirm prepayment terms and request an official payoff amount before closing a loan.
  • Do not commit emergency or essential-expense money merely to match an earlier modeled payoff date.
  • Seek a qualified nonprofit credit counselor, financial professional, or attorney when payments are unaffordable or collection, insolvency, or legal issues are involved.

Worked Examples:

Two zero-interest balances with extra cash

Debts of $100 and $200 each have a $50 minimum. Adding $50 extra creates a $150 first-month budget. With no interest, the smaller debt receives its $50 minimum and another $50 as the avalanche tie-breaker, while the larger debt receives $50. The remaining $150 clears in the second month, one month sooner than the same $100 required-payment budget without extra cash.

Monthly interest changes a one-month payoff

A $1,000 balance at 12% APR adds $10 of modeled monthly interest. A $1,000 minimum plus $10 extra pays $1,010 in March 2026 and closes the debt in one month. This exact result belongs to the monthly model; a creditor using daily balances may quote a different amount.

FAQ:

Does the lowest-interest strategy always pay off first?

No. Avalanche usually reduces modeled interest by targeting the highest APR, but snowball or another order can close an individual account sooner. The total payoff month can also tie when the overall monthly budget stays fixed.

Why does the plan reject a payment budget?

The modeled payment must reduce principal after monthly interest. A plan is also rejected if it cannot clear all balances within 600 months. Correct the balances, APRs, or minimums, then raise the affordable payment budget if needed.

References: