Debt Calculator

- May 22, 2025
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Calculate your debt payoff plan based on your current debts, interest rates, and monthly payment amount. This calculator helps you understand how long it will take to pay off your debts and the total interest you'll pay.

Payment Information

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Debt Information

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Advanced Options

About Debt Payoff Strategies

There are different strategies for paying off multiple debts effectively. The two most common approaches are the Avalanche and Snowball methods.

Debt Avalanche Method

The Avalanche method prioritizes debts with the highest interest rates first. This approach minimizes the total interest paid and is mathematically the most efficient way to pay off debt.

  1. Make minimum payments on all debts
  2. Apply extra payments to the debt with the highest interest rate
  3. Once that debt is paid off, roll the payment into the next highest interest rate debt
  4. Continue until all debts are paid off
Debt Snowball Method

The Snowball method prioritizes debts with the lowest balances first. This approach provides psychological wins by paying off debts quickly, which can help maintain motivation.

  1. Make minimum payments on all debts
  2. Apply extra payments to the debt with the lowest balance
  3. Once that debt is paid off, roll the payment into the next lowest balance debt
  4. Continue until all debts are paid off
Interest Calculation

This calculator uses the daily interest calculation method (APR divided by 365) and compounds interest daily, similar to how most credit cards and loans work.

Understanding the Debt Calculator

The Debt Calculator is a helpful tool that helps you figure out how long it will take to pay off your debts. By entering your current debts, interest rates, and monthly payment amounts, you can get a clear picture of your Financial situation. It shows you the total interest you will pay and helps you create a plan to become debt-free.

How to Input Your Payment Information

To use the Debt Calculator, start by entering your monthly payment amount. You can choose a default value or enter your own amount. Next, select a payment strategy that suits your needs. The two main options are:

  • Avalanche Method: Focuses on paying off debts with the highest interest rates first.
  • Snowball Method: Targets the lowest balance debts to give you quick wins.

Adding Your Debts

You can add multiple debts to the calculator to see how they affect your overall payment plan. For each debt, you'll need to provide the name, current balance, interest rate, and minimum payment. This way, you can track your progress and make informed decisions.

Exploring Advanced Options

The Debt Calculator also offers advanced options for users who want more control. You can adjust the number of decimal places for the results and choose whether to view a detailed payoff schedule. This feature is helpful if you want to see how each payment affects your debt over time.

Seeing Your Results

Once you've entered all your information, the calculator displays your debt payoff results. You can see the total payoff time, total principal, total interest paid, and the total amount you'll end up paying. This summary gives you a complete view of your debt situation.

Understanding Your Debt Payoff Summary

The calculator provides a detailed summary of each debt along with important information such as:

  • Order of payoff
  • Original balance of each debt
  • Interest rate
  • Payoff date
  • Total interest paid on each debt

Visualizing Your Payoff Timeline

One exciting feature of the Debt Calculator is the payoff chart. It visually represents your debt payoff timeline, allowing you to see how long each debt takes to be paid off. This can provide motivation as you watch your debts decrease over time.

Learning About Debt Payoff Strategies

Finally, the calculator offers insights into the two main debt payoff strategies. Understanding these methods can help you choose the best approach for your situation. Whether you prefer the Avalanche method for saving on interest or the Snowball method for quick wins, knowing your options is key to success.