Money

Loan Repayment Calculator

Compare payoff strategies across all your debts, see which one gets you debt-free fastest, and find out where extra money — recurring or a one-off lump sum — does the most good.

What This Calculator Does

You've got multiple debts and extra money to put toward them each month — but which one should you pay off first? This calculator runs both major payoff strategies side by side using your actual numbers, so you can see exactly what each one costs you in total interest and how long each takes, rather than guessing.

Your debts

"Payment" is what you currently pay each month toward that debt — it can be the contractual minimum or more.

Extra money to put toward your debts

Extra every month

On top of what you already pay, each month, from now on.

One-off lump sum, applied now

A bonus, tax refund, or savings you're putting toward debt today.

Add at least one debt above to see your results.

The Two Methods

Debt Snowball: Smallest Balance First

List your debts from smallest balance to largest, ignoring interest rate. Put your extra payment toward the smallest debt while making minimum payments on the rest. Once that smallest debt is paid off, roll its payment into the next-smallest, and so on.

The idea: paying off a whole debt — even a small one — gives you a quick, visible win. That momentum is often what keeps people sticking with a payoff plan long enough to finish it.

Debt Avalanche: Highest Interest Rate First

List your debts from highest interest rate to lowest, ignoring balance. Put your extra payment toward the highest-rate debt while making minimum payments on the rest. Once that debt is paid off, roll its payment into the next-highest rate, and so on.

The idea: interest is what actually costs you money over time, so attacking the most expensive debt first minimizes the total amount you pay across everything.

Which One Is “Better”?

Mathematically, Avalanche almost always wins — it minimizes the total interest you pay and, in most cases, gets you debt-free slightly faster too, since less of your money is lost to interest along the way.

But the method that actually gets finished is the one you stick with. Snowball's quick wins are a real psychological advantage for a lot of people — if watching a balance hit zero is what keeps you motivated, that's worth something the math alone doesn't capture.

Use the numbers above to see your specific gap between the two methods. If the interest difference is small, the psychological edge of Snowball might be worth it. If the gap is large — which tends to happen when you have a high-interest debt like a credit card alongside low-interest debt like a car loan — Avalanche's savings are harder to ignore.

FAQ

Can I switch strategies partway through?

Yes — nothing about either method locks you in. Some people start with Snowball for early motivation, then switch to Avalanche once they've got some momentum and want to prioritize savings.

Which method saves more money overall?

Avalanche almost always saves more in total interest, since it targets the most expensive debt first. The size of that saving depends on how much your interest rates actually differ across your debts — check your results above for your specific numbers.

What if I get an irregular windfall, like a tax refund or bonus?

Either strategy handles a one-time extra payment the same way: apply it to whichever debt is "first in line" under the method you're using (smallest balance for Snowball, highest rate for Avalanche).