Menu
For kidsColoring pages with your business name
Business finance / Debt Payoff Calculator

Debt Payoff Calculator

Plan how to pay off several debts at once: enter up to five balances with their APR and minimum payment, plus what extra you can pay each month. The calculator compares the avalanche and snowball methods and shows your debt-free date, total interest and the order to pay them.
Debt 1
$

Enter a number of at least 0

%

Enter a number from 0 to 100%

$

Enter a number of at least 0

Debt 2
$

Enter a number of at least 0

%

Enter a number from 0 to 100%

$

Enter a number of at least 0

Debt 3
$

Enter a number of at least 0

%

Enter a number from 0 to 100%

$

Enter a number of at least 0

Debt 4
$

Enter a number of at least 0

%

Enter a number from 0 to 100%

$

Enter a number of at least 0

Debt 5
$

Enter a number of at least 0

%

Enter a number from 0 to 100%

$

Enter a number of at least 0

$

Enter a number of at least 0

On top of all the minimums. It goes to the target debt first.

Debt-free with the avalanche method in
2 years 10 months
$5,672.35avalanche interest
$6,152.10 · 2 years 11 monthssnowball interest
$11,795.81 · 5 years 11 monthsminimums only
$0total paid $31,172.35 (avalanche)
  • Balances
  • Interest
Total balance$25,500.00
Monthly budget · all minimums + extra$925.00
Avalanche (highest APR first) · $5,672.35 interest2 years 10 months
1. Debt 1 · $9,000.00 at 22.99%month 19
2. Debt 3 · $14,000.00 at 12.50%month 34
3. Debt 2 · $2,500.00 at 9.90%month 34
Snowball (smallest balance first) · $6,152.10 interest2 years 11 months
1. Debt 2 · $2,500.00 at 9.90%month 7
2. Debt 1 · $9,000.00 at 22.99%month 22
3. Debt 3 · $14,000.00 at 12.50%month 35
Minimum payments only · $11,795.81 interest5 years 11 months

The avalanche saves $479.75 of interest over the snowball. The snowball clears its first debt in month 7, which some people find easier to stick with.

See breakdown

How the debt payoff calculation works

  1. List each debt

    Enter the balance, APR and minimum payment from each statement: business or personal credit cards, a line of credit, a small loan. Leave unused rows at 0.

  2. Set one monthly budget

    The budget is all the minimums plus your extra amount. It stays the same every month, so when a debt is paid off its minimum rolls into the next one. Minimums are kept fixed; card minimums that shrink with the balance would make the minimums-only plan even longer.

  3. Each month: interest, minimums, then the target

    Every balance accrues APR ÷ 12 of interest, every debt gets its minimum, and the rest goes to the target debt: the highest APR for the avalanche, the smallest balance for the snowball.

  4. Compare the two plans

    The result shows the debt-free date, total interest and the month each debt is cleared under both methods, plus what paying only the minimums would cost.

Worked example. A business owner has a $9,000 credit card at 22.99% ($270 minimum), a $2,500 loan at 9.90% ($75) and a $14,000 line of credit at 12.50% ($280), and can pay $300 extra a month, $925 in all. With the avalanche (card first) she is debt-free in 2 years 10 months and pays $5,672.35 of interest. The snowball (small loan first) takes 2 years 11 months and costs $6,152.10, which is $479.75 more, but it clears the first debt in month 7. Paying only the minimums would take 5 years 11 months and cost $11,795.81.

Debt Payoff FAQ

What is the difference between the debt avalanche and the debt snowball?

Both pay the minimum on every debt and put all extra money on one target. The avalanche targets the highest interest rate first, which costs the least interest. The snowball targets the smallest balance first, so the first debt disappears sooner and you see progress early.

Which is better, avalanche or snowball?

On interest the avalanche always wins or ties. The snowball can still be the better plan for you if quick wins keep you paying. Enter your debts above to see how much the choice is really worth; often it is a few hundred dollars.

How do I calculate how long it will take to pay off my debt?

Add up all the minimums plus your extra payment to get the monthly budget, then run the balances month by month: add each month's interest, pay the minimums, put the rest on the target debt. This calculator does exactly that until every balance is zero.

What happens when one debt is paid off?

Its minimum payment is not spent elsewhere; it rolls into the next debt on the list. That is why payments snowball and the last debts go much faster than the first.

Should I pay off debt or build a cash reserve first?

Many owners keep a small reserve for emergencies first, so a surprise bill does not go back on a card, then attack high-APR debt. Compare your card APR with what savings earn: a 23% card costs far more than a savings account pays.

Can I use this for a single loan or credit card?

Yes, fill in one row. For one loan with a fixed payment, the loan payoff calculator also shows how many months and how much interest an extra payment saves.

Related calculators

Loan Payoff CalculatorSee how much faster you pay off a loan with extra monthly payments or a lump sum, how many months you cut and how much interest you save.Amortization Schedule CalculatorSee the monthly payment and how each payment splits between interest and principal, month by month for the first year and then year by year.Business Line of Credit CalculatorEstimate the monthly payment and interest on what you've drawn from a business line of credit, and how much credit is still available.Business Loan CalculatorThe monthly payment, total interest and full cost of a business term loan, including any origination fee.APR CalculatorThe true APR of a business loan once up-front fees are counted, so you can compare financing offers on equal terms.Debt-to-Equity Ratio CalculatorYour debt-to-equity ratio from balance sheet figures, using all liabilities or interest-bearing debt only, plus the debt ratio and equity multiplier.Savings CalculatorWork out how much to save each month to reach a savings goal by a set month, or how long your monthly deposit takes to get there. It works for a personal emergency fund and for a business cash reserve; interest is added at the APY your bank quotes.Cash Flow CalculatorMoney in minus money out for one month of your business: net cash flow, ending cash and how long the cash lasts.