About the Debt Payoff Planner
Most people with more than one debt have to choose which one to pay first. This planner lays out that choice for all your debts at once. Add each debt with its balance and interest rate, set how much extra you can put toward debt each month, and see when each debt clears and how much interest you pay along the way.
The planner is a tool for testing your own numbers. It does not tell you what to do.
How to use the planner
- Enter each debt with its name, balance, and interest rate. Use "Add another debt" for more.
- Set the extra monthly payment. This is the money you can put toward debt on top of the minimum payments.
- Choose a strategy. Snowball pays off the smallest balance first. Avalanche pays off the highest rate first.
- Read the results, then download the CSV or PDF report, or share the results.
How the calculation works
Each debt has a minimum payment. It is a small share of the starting balance, with a fixed least amount, whichever is larger. The planner adds the minimum payments together with your extra money. That total stays the same every month.
Every month, each debt earns interest. The interest is the balance multiplied by the monthly rate, and the monthly rate is the annual rate divided by the number of months in a year. Each debt's payment reduces its balance by the payment minus that month's interest.
The extra money goes to one debt at a time, in the order your strategy sets. When a debt is cleared, its payment moves to the next debt, so the total payment does not change.
Understanding the result
The results are estimates. They assume each interest rate stays fixed, no new charges are added, and every payment is made on time. Lenders and card issuers can calculate interest and minimum payments in their own ways, so the statement from your lender may differ.
A debt must have a minimum payment that covers its monthly interest. If it does not, the balance never falls, and the planner will say so.
