Pay off multiple debts with snowball or avalanche strategy, or model a mortgage with full amortization and extra payment analysis — all in one place.
Total you can put toward all debts each month. Must exceed your combined minimums.
Additional amount on top of minimums — goes entirely to your target debt.
Add your debts and press
Calculate Payoff Plan
Common questions about this calculator and how to use it effectively.
Pay the smallest balance first regardless of interest rate. Once eliminated, roll that payment into the next smallest debt. The psychological momentum of quick wins makes this method highly effective for people who struggle with motivation — research shows it has higher completion rates than avalanche.
Target the highest interest rate debt first, paying minimums on everything else. Mathematically optimal — you pay less total interest over time. Best for people who can stay motivated without early wins and want to minimize the total cost of becoming debt-free.
Avalanche saves more interest, often hundreds to thousands of dollars on larger balances. However, the best method is the one you'll actually stick to. Studies show many people abandon avalanche when progress feels slow — snowball's early wins keep people on track.
Extra payments go entirely to your target debt's principal, skipping interest charges on that balance. On $10,000 at 20% APR: an extra $100/month reduces payoff from 79 months to 53 months and saves over $2,000 in interest. Use this calculator to model your exact savings.
Paying only minimums on high-interest debt can extend payoff by decades. A $5,000 credit card balance at 22% APR with $100/month minimum takes over 9 years and costs $5,900 in interest — more than the original balance. This calculator shows the real cost of minimum-only payments.
Add up to 8 debts with each debt's name, balance, APR, and minimum payment. Set your total monthly budget and choose snowball or avalanche. The calculator simulates month-by-month payoff, shows the order debts are eliminated, and calculates exact interest savings from extra payments. Once you're debt-free, see how your money works as a rental investment with our Cash on Cash Calculator.
A general rule: if debt APR > expected investment return (typically 7–10%), pay off debt first. High-interest debt (15%+ APR) almost always beats investing. Low-interest debt (under 6%) may be worth carrying while investing in retirement accounts, especially with employer matching. To understand your full tax picture on investment income, try our Tax Estimator. Once debt is cleared, redirect payments to a retirement fund — use our Retirement Calculator to see the compound effect, or model dividend investing with our DRIP Calculator.
Debt consolidation combines multiple debts into one lower-rate loan, reducing monthly payments and total interest. It works best when you can qualify for a significantly lower rate. Be cautious of extending the payoff timeline — a lower rate on a longer term may cost more total interest. After eliminating debt, model long-term wealth building with our DRIP Calculator.
An amortization schedule is a complete table of every loan payment, showing how each payment splits between principal (reducing your balance) and interest (cost of borrowing). Early in the loan, most of each payment is interest. As the balance decreases, the principal portion grows and interest shrinks. Use the Mortgage tab's Full Schedule view to see every payment for your loan.
Extra payments go entirely to principal, reducing future interest dramatically. On a $400,000 30-year mortgage at 7%: an extra $200/month saves approximately $87,000 in interest and pays off the loan about 6 years early. The earlier you start, the greater the savings. Use the Mortgage tab to model your exact scenario with any extra payment frequency — monthly, bi-weekly, quarterly, annually, or a one-time lump sum.
Yes — making bi-weekly half-payments results in 26 payments per year, which equals 13 full monthly payments instead of 12. That one extra payment per year reduces principal faster, typically shaving 4-6 years off a 30-year mortgage and saving tens of thousands in interest. It's one of the easiest strategies to accelerate payoff without a large cash impact. Not all lenders accept bi-weekly payments directly — confirm with your lender, or simply make one extra principal payment per year yourself.
The answer depends on your mortgage rate vs. expected investment returns. At 7%+ mortgage rates, paying down the mortgage is often the better guaranteed return. At rates below 5%, a diversified equity portfolio has historically earned more. Most advisors suggest: max your employer 401k match first, then max a Roth IRA, then choose between extra mortgage payments and investing based on your rate. Use our Retirement Calculator to model the long-term investment side of this decision.