How the debt repayment calculator works
If you have several kinds of consumer debt at different rates and you are not sure how long it will take to clear them, this calculator adds them up for you. Enter each debt's balance and interest rate (credit card, car loan, line of credit, overdraft, or other), and add as many as you like.
Then choose how you want to plan:
- Expected monthly payment. Enter the total you would like to put toward your debts each month, and the calculator shows how long they will take to clear and how much interest you will pay.
- Desired payoff timeframe. Enter how quickly you want to be debt-free, and it works out the monthly payment you would need, interest included.
Avalanche vs. snowball
Carrying more than one balance? Two popular strategies can help you decide what to pay first.
The debt avalanche targets the highest interest rate first, while you keep paying the minimum on the rest. Between a card at 19.95% and one at 24.99%, you would attack the 24.99% card, because it costs you the most.
The debt snowball targets the smallest balance first, for quick and motivating wins. Between a $2,000 balance and a $5,000 balance, you would clear the $2,000 first, then roll that momentum into the next one. Choose whichever keeps you motivated.