Debt Payoff Calculator
List your debts, choose snowball or avalanche, and get a month-by-month plan: your debt-free date, total interest, payoff order, and exactly how much the better strategy saves.
Payoff order
| Debt | APR | Paid off in | Interest paid |
|---|---|---|---|
| Overdraft | 39.9% | 6 months | £101.31 |
| Credit card | 21.9% | 1 year and 8 months | £739.68 |
| Car loan | 6.9% | 2 years and 9 months | £1,050.94 |
How the plan works
Each month, interest accrues on every balance, minimum payments are made, and everything left in your budget goes at one target debt — the highest APR (avalanche) or the smallest balance (snowball). When a debt clears, its payment rolls into the attack on the next one, so your total monthly budget never changes but progress accelerates.
Frequently asked questions
What is the debt avalanche method?
Pay minimums on everything, then put every spare pound toward the debt with the highest interest rate. When it's cleared, roll its payment into the next-highest rate. Mathematically this always minimises total interest paid.
What is the debt snowball method?
Pay minimums on everything, then attack the smallest balance first for a quick win, rolling freed-up payments into the next smallest. It can cost slightly more interest than the avalanche, but the early victories help many people stick with the plan.
Snowball or avalanche — which should I choose?
Avalanche if you're motivated by the maths, snowball if you're motivated by momentum. On the example debts in this calculator the avalanche saves £0 versus the snowball — this tool shows the exact difference for your debts, so you can decide with real numbers.
Why does my plan say the debts never get paid off?
If a debt's minimum payment doesn't even cover its monthly interest, the balance grows forever. Increase the payment on that debt (or add an extra monthly amount) until it's above the monthly interest charge.