Debt Payoff Calculator - Estimate Payoff Time for Multiple Debts Using Debt Avalanche

Debt Avalanche Calculator

Debt Account Name Outstanding Balance ($) Monthly / Minimum Payment ($) Annual Percentage Rate (APR %)

Additional Contributions

extra per month

extra per year

one-time contribution in month

*Maintain a fixed total monthly payment amount?

Yes

Add More Debt Accounts (Optional)

Repayment Summary

📖 How to Use This Calculator Effectively

Step 1: Gather Your Debt Information

Account Names: Enter descriptive names (Credit Card, Auto Loan, etc.)
Outstanding Balances: Current amount owed on each debt
Minimum Payments: Required monthly payment for each debt
APR: Annual Percentage Rate (find this on your statements)

Step 2: Add Extra Payment Information

Monthly Extra: Additional amount you can pay each month
Annual Extra: Bonus, tax refund, or yearly windfall
One-time Payment: Specific lump sum in a particular month

Step 3: Choose Payment Strategy

Fixed Payment: Maintains consistent total monthly payment
Variable Payment: Payments decrease as debts are paid off

Step 4: Analyze Results

Review payoff timeline and total interest
Examine payment schedules for each debt
Use detailed breakdowns to track progress

This calculator uses the debt avalanche method, which prioritizes paying off debts with the highest interest rates first. This mathematically optimal approach minimizes the total interest paid over time.

How to Use the Debt Avalanche Method with Extra Payments to Pay Off Debt?

Debt avalanche example

Let’s say you have the following debts:

Auto Loan balance: $35,000 at 5.9% interest, with a $500 minimum payment.
Home mortgage balance: $25,0000 at 4.5% interest, with a $2000 minimum payment.
Boat Loan balance: $7,000 at 5.9% interest, with a $150 minimum payment.
Credit card balance: $8,500 at 20.9% interest, with a $80 minimum payment.

Your debt portfolio will be fully repaid within 153 months (12 years and 9 months) with the fixed monthly/min., with total payments amounting to $416584.96, including $116084.96 in interest charges.

Debt	Payoff Duration	Total Interest Paid ($)	Total Amount Paid ($)	Payment schedule
#1: Auto Loan	113 months (9 years and 5 months)	22457.05	30957.05	Pay 80.00 until month 53.Then Pay 208.59 until month 54.Then Pay 230.00 until month 86.Then Pay 724.76 until month 87.Then Pay 730.00 until month 112.Then Pay 173.71 at month 113 to payoff.
#2: Credit card	87 months (7 years and 3 months)	8005.24	43005.24	Pay 500.00 until month 86.Then Pay 5.24 at month 87 to payoff.
#3: Boat Loan	54 months (4 years and 6 months)	971.41	7971.41	Pay 150.00 until month 53.Then Pay 21.41 at month 54 to payoff.
#4: Home mortgage	153 months (12 years and 9 months)	84651.25	334651.25	Pay 2000.00 until month 112.Then Pay 2556.29 until month 113.Then Pay 2730.00 until month 152.Then Pay 1624.96 at month 153 to payoff.

IF Extra payments: $300 per month

Your debt portfolio will be fully repaid within 127 months (10 years and 7 months) with the fixed monthly/min. and extra payments, with total payments amounting to $381857.42, including $81357.42 in interest charges.

Debt	Payoff Duration	Total Interest Paid ($)	Total Amount Paid ($)	Payment schedule
#1: Auto Loan	29 months (2 years and 5 months)	2364.06	10864.06	Pay 380.00 until month 28.Then Pay 224.06 at month 29 to payoff.
#2: Credit card	59 months (4 years and 11 months)	6231.29	41231.29	Pay 500.00 until month 28.Then Pay 655.94 until month 29.Then Pay 880.00 until month 53.Then Pay 1008.59 until month 54.Then Pay 1030.00 until month 58.Then Pay 326.77 at month 59 to payoff.
#3: Boat Loan	54 months (4 years and 6 months)	971.41	7971.41	Pay 150.00 until month 53.Then Pay 21.41 at month 54 to payoff.
#4: Home mortgage	127 months (10 years and 7 months)	71790.65	321790.65	Pay 2000.00 until month 58.Then Pay 2703.23 until month 59.Then Pay 3030.00 until month 126.Then Pay 77.42 at month 127 to payoff.

FAQ

What's the Difference Between Debt Avalanche and Debt Snowball Methods?

The debt avalanche method (used by this calculator) focuses on paying off highest interest rate debts first, minimizing total interest paid. The debt snowball method focuses on paying off smallest balances first, providing psychological motivation through quick wins.

Should I Maintain Fixed Monthly Payments?

Yes, if possible. Maintaining fixed total monthly payments as debts are paid off allows you to apply freed-up money to remaining debts, accelerating payoff and reducing total interest.

How Accurate Are These Calculations?

The calculations are mathematically accurate based on the inputs provided, but actual results may vary due to interest rate changes, fees, or changes in payment behavior.

References

Government Resources:

Consumer.gov - Paying Off Debt - Official U.S. government guidance on debt management strategies
Consumer Financial Protection Bureau (CFPB) - Credit Card Debt Strategies - Federal guidance on debt repayment methods
FDIC Money Smart - Credit and Debt - Federal Deposit Insurance Corporation educational materials
USA.gov - Dealing with Debt - Official U.S. government portal for debt management information