Enter up to three debts to see how long it takes to pay them all off using the avalanche method (highest interest rate first), plus total interest paid.
The debt avalanche method pays minimum amounts on all debts while directing any extra payment toward the debt with the highest interest rate first, minimizing total interest paid.
This tool simulates month-by-month payments, applying extra funds to the highest-APR debt until it is cleared, then moving to the next highest, repeating until all debts are paid.
Enter the balance, APR, and minimum payment for each debt (up to three), plus any extra amount you can pay monthly, then click Calculate.
Example: Combining two debts with an extra payment focused on the higher-rate debt first typically clears both debts faster and cheaper than paying minimums only.
What is the snowball method. It pays off the smallest balance first instead of the highest rate, which can be more motivating psychologically even if it costs slightly more interest.
Should I stop investing to pay off debt faster. Generally, pay off high-interest debt (above 15-20%) before investing, since guaranteed interest savings often beat market returns.