The Debt Payoff Calculator finds the quickest way to pay off several debts with extra monthly, yearly or one-time payments, using the debt avalanche method.
Debt-free in 11 years and 4 months, 8 months sooner, saving $6,579.24 in interest.
| Original payoff time | 12 years |
| Original total interest | $79,432.12 |
| Payoff time with extra payments | 11 years and 4 months |
| Total interest with extra payments | $72,852.87 |
| Interest saved | $6,579.24 |
| Credit card 1 paid off | 2 years and 7 months |
| Credit card 2 paid off | 3 years and 3 months |
| Auto loan paid off | 4 years |
| Home mortgage paid off | 11 years and 4 months |
Most households carry more than one debt: a car loan, a mortgage, a couple of credit cards, maybe student loans. Paying each one separately at its minimum works, but adding even a small extra amount and directing it wisely can cut years off and save a lot of interest.
This calculator follows the avalanche method: extra money goes to the debt with the highest interest rate first. When a debt is cleared, its regular payment is added to the next one, so your total monthly outlay stays the same while debts fall like dominoes. Yearly extras are applied every 12th month and the one-time payment in the month you choose.
Worked example: with the default auto loan, mortgage and two cards, adding $100 a month targets the 18.99% card first, then the 16.99% card, then the auto loan, finishing well before the original schedule.
Interest rate is the most important factor, but not the only one. Debts with tax-deductible interest (some mortgages and student loans) cost less after tax. Debts with variable rates carry more risk. Paying off a small loan entirely can also free up monthly cash flow. Keep a small emergency fund so a surprise expense does not send you back to credit cards.
Should I pay off debt or invest? Paying off a debt at 19% is a guaranteed 19% return, which beats most investments; low-rate debt is less urgent.
Is the mortgage included? You can include or remove any line.
What if a payment is less than its interest? The calculator will warn that the debt will never be paid off.