How to Use the Debt Payoff Calculator

Our Loan Calculator helps you create a personalized plan to become debt-free faster, with visual charts to track your progress. Here’s how to get started:

Add Your Loans

Start by entering your debts in the "Your Loans" section. For each loan, input:

Loan Name: A label to identify it (e.g., "Car Loan").

Balance: The current amount you owe.

Interest Rate: The annual interest rate (e.g., 5%).

Minimum Payment: The minimum monthly payment required.

Click Add Loan to include more debts—add as many as you have!

Choose Your Payoff Method

In the "Payment Plan" section, pick your strategy:

Avalanche (Highest Interest First): Focuses on the loan with the highest interest rate first, saving you money on interest over time.

Snowball (Lowest Balance First): Tackles the smallest balance first, giving you quick wins to stay motivated.

Set Your Total Monthly Payment

Use the slider to decide how much you can pay toward all your loans each month. The minimum is automatically set to the sum of your loans’ minimum payments, but you can increase it to pay off debt faster. The amount you choose will show next to the slider (e.g., "$1,000").

Review Your Payoff Plan

Once you’ve entered your loans and payment details, the calculator updates automatically:

Principal Paid: The total amount you owe across all loans, with a note on what’s left to pay.

Paid Off: The date you’ll be debt-free, plus how many years it’ll take.

Interest Paid: The total interest you’ll pay over the life of your loans.

Average Interest Rate: The average rate across all your loans.

Explore the Charts

Below the summary, a chart visualizes your payoff journey. Use the toggle buttons to switch between views:

Principal Remaining: See how your loan balances decrease over time (stacked for multiple loans).

Total Interest Paid: Track the cumulative interest you’re paying as you go.

Monthly Payments: View your total monthly payment over time (helpful if you adjust the slider).

Percent Toward Principal: Check what percentage of each payment goes toward principal versus interest, so you can see your progress.

The x-axis shows dates, starting from today, so you can see exactly when each loan will be paid off.

Pro Tip: Try increasing your monthly payment or switching between Avalanche and Snowball methods to see how it affects your payoff date and total interest. Small changes can make a big difference!

Note: This calculator assumes fixed interest rates and consistent payments. It doesn’t account for fees, variable rates, or missed payments. For a detailed plan, consider consulting a financial advisor. Start planning your debt-free future today!