Debt Payoff Planner

Plan how to clear several debts: compare avalanche, snowball and your own order, and see your debt-free date, total interest and when each debt is cleared.

Reviewed by Dany, RightSums team · Updated

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personal-finance · Daily life · UK & US & Canada

List your debts with the balance, APR and minimum payment for each, then enter the total you can pay each month. The planner pays every minimum, puts the rest on one target debt and, when that debt is cleared, moves its payment on to the next. It compares the avalanche order (highest rate first), the snowball order (smallest balance first), your own order and paying only the minimums. You get your debt-free date, total interest, total paid, the month each debt is cleared, a month-by-month table and what an extra payment would save. Prices show in pounds, dollars or Canadian dollars. Interest is APR divided by 12 each month with fixed minimums, so real statements will differ. It is an estimate, not financial advice.

Accepted inputs

  • Debts: name, balance, APR and minimum monthly payment (add or remove rows, up to 10)
  • Total monthly budget for debts (at least the minimums added up)
  • Order: avalanche, snowball or your own order
  • One-off extra payment and the month it is paid (optional)
  • Country for currency and help links: UK, US or Canada

Outputs

  • Debt-free date and months
  • Total interest and total paid
  • Avalanche, snowball and minimum payments side by side
  • Order and month each debt is cleared
  • Interest and time saved by paying more each month
  • Effect of a one-off payment
  • Warning when a minimum does not cover the interest
  • Month-by-month table with each debt's balance
  • Links to free debt advice

How to use the Debt Payoff Planner

  1. Add each debt with its balance, APR and minimum monthly payment, which you can find on your statements.
  2. Enter the total you can pay towards all your debts each month, which must cover every minimum.
  3. Choose avalanche to pay the highest rate first, snowball to pay the smallest balance first, or your own order.
  4. Read your debt-free date, the interest for each order side by side and the month each debt is cleared, then see what paying more would save.

Frequently asked questions

Which debt should I pay off first, snowball or avalanche?

Avalanche, the highest rate first, costs the least interest; snowball, the smallest balance first, clears a debt sooner. With $5,000 at 20% and $2,000 at 10%, minimums of $100 and $60 and $300 a month, avalanche takes 29 months and $1,511.13 in interest. Snowball takes 30 months and $1,789.68, but clears its first debt in month 11 instead of 26.

How long will it take to pay off all my debts?

It depends on your balances, rates and monthly budget. A £2,000 card at 20% with a £60 minimum and a £5,000 loan at 10% with a £100 minimum, paid off with £300 a month, are cleared in 27 months with £940.81 in interest. Paying only the minimums takes 65 months and £2,438.53.

How does the debt snowball method work?

You pay the minimum on every debt and put any spare money on one target; when it is cleared, its payment moves to the next. In the £2,000 and £5,000 example above, the card gets £200 a month and is cleared in month 12. From then on the whole £300 goes to the loan, which is cleared in month 27.

How much faster will I be debt-free if I pay more each month?

Usually by months, not weeks. In the £2,000 at 20% and £5,000 at 10% example, adding £50 a month to the £300 budget clears you 4 months sooner and saves £154.68 in interest. Adding $100 a month to the same debts in dollars clears you 7 months sooner and saves $263.75.

What if my payments do not cover the interest?

Then the debt grows and never clears. £10,000 at 30% APR adds £250 of interest in the first month, so £200 a month never pays it off, and the planner tells you so. Talk to free debt advice first: MoneyHelper, StepChange or National Debtline in the UK, an NFCC nonprofit counselor in the US, or FCAC guidance in Canada.

Sources

The rates and rules in this tool come from:

Guides that use this tool

Terms explained

  • Debt avalanche method: The debt avalanche pays the minimum on every debt and puts all spare money on the debt with the highest interest rate first.
  • Debt snowball method: The debt snowball pays the minimum on every debt and puts all spare money on the smallest balance first, whatever its interest rate.

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