Debt Payoff Calculator: Plan Your Path to Financial Freedom
Take control of your financial future with our comprehensive debt payoff calculator. Enter your debts below to get a customized repayment plan using either the avalanche (highest interest first) or snowball (smallest balance first) method.
Total Time to Debt Freedom
Total Interest Paid
Interest Savings
Understanding Debt Payoff Strategies
Debt Avalanche Method
The debt avalanche method prioritizes paying off debts with the highest interest rates first while maintaining minimum payments on other debts. This strategy minimizes the total interest paid and typically results in the fastest path to debt freedom from a mathematical perspective.
Debt Snowball Method
The debt snowball method focuses on paying off the smallest debts first, regardless of interest rates. While this may result in paying more interest overall, it provides quick wins that can help maintain motivation throughout the debt payoff journey.
Tips for Successful Debt Payoff
- Create and stick to a budget to maximize debt payments
- Consider balance transfer options for high-interest credit card debt
- Look for ways to increase income through side hustles or overtime
- Avoid taking on new debt while paying off existing obligations
- Celebrate small victories along your debt-free journey