Debt Payoff Calculator Eliminate debt faster with avalanche or snowball strategies — with 2025 APRs, payoff timelines, an...

Debt Payoff Calculator

Eliminate debt faster with avalanche or snowball strategies — with 2025 APRs, payoff timelines, and interest savings.

Debt Avalanche

Debt Snowball

Custom Plan

Monthly Payment ($)

Lump Sum ($)

Card 1: Balance ($)

APR (%)

Card 2: Balance ($)

APR (%)

Monthly Payment ($)

Monthly Payment ($)

Pay Frequency Monthly Bi-Weekly

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Months to Freedom

$0

Total Interest

$0

Interest Saved

$0

Final Payment

Payoff Timeline Comparison

Debt Payoff Strategies Explained

Debt Avalanche** = Highest APR first → mathematically optimal

Debt Snowball** = Smallest balance first → psychological wins boost motivation

Example** ($3K @ 24.9% + $2K @ 18.9%, $300/mo): • **Avalanche**: Pay $3K card first → **22 months**, **$924 interest** • **Snowball**: Pay $2K card first → **23 months**, **$1,172 interest** → Avalanche saves **$248** and **1 month**

✅ Pro Tip**: Start with snowball if you need quick wins; switch to avalanche mid-plan once momentum builds.

Debt Payoff Red Flags

⚠️ Avoid these dangerous traps:

• Debt settlement scams** — “Pay 50% to erase 100%” → destroys credit, taxes on forgiven amount
• Minimum payment illusion** — $60/mo on $3K @ 24.9% = 8+ years, $2,180 interest
• 0% balance transfer without payoff date** — 21% after intro → deeper hole
• Loan stacking** — New personal loan to pay cards → more debt, not less

✅ Smart Payoff Tactics**:

• Call issuers: Ask for **rate reduction** (cite competing offers)
• Use **bi-weekly payments** — 13 full payments/year
• Apply tax refunds/bonuses as lump sums

2025 Debt Payoff Benchmarks

Debt Mix	Avalanche	Snowball	Minimum Payments
$5K CC @ 22%	19 mo, $920 int	19 mo, $920 int	9+ yrs, $5,410 int
$8K (24.9%+18.9%)	22 mo, $924 int	23 mo, $1,172 int	11+ yrs, $8,310 int
$15K (CC + Personal)	41 mo, $2,840 int	44 mo, $3,190 int	20+ yrs, $21K+ int

📉 Acceleration Impact** ($300/mo → $400/mo):

• 8K debt: **22 mo → 16 mo** (6 months faster)
• Interest saved: **$924 → $654** ($270 saved)

How to Use This Calculator

➡️ Debt Avalanche

Add debts → see fastest, cheapest payoff path.

➡️ Debt Snowball

Same debts → see motivational timeline (smallest first).

➡️ Custom Plan

Bi-weekly payments, lump sums, or manual order.

Note: Uses daily compounding. Assumes no new charges. Minimum payment = max($25, 1–3% + interest).