Debt Payoff Calculator

Total debt

sum of all balances

$5,000 + $15,000 + $8,000

= $28,000

This is the starting principal across every debt account before future interest accrues. Source: standard balance aggregation used in amortization and debt payoff worksheets.

Debt payoff worksheet total balance

Blended APR

Σ(balance × APR) ÷ total debt

Σ(balance × APR) ÷ $28,000

= 10.23%

A weighted-average APR shows the overall interest drag on your debt stack before any prioritization strategy is applied. Source: weighted-average cost formula from consumer debt analysis.

Weighted average APR formula

Monthly minimum payments

sum of all minimum payments

$100 + $175 + $200

= $475

These are the required payments you must make even before adding any debt-attack money. Source: creditor minimum-payment schedule.

Debt servicing minimum-payment sum

Total monthly payment

minimum payments + extra payment

$475 + $200

= $675

This is the total cash you throw at debt each month, with the extra amount redirected to the priority balance after minimums are covered. Source: standard avalanche/snowball payoff framework.

Debt avalanche / debt snowball monthly payment rule

Avalanche payoff path

monthly interest = balance × APR ÷ 12; extra payment goes to the highest APR debt

$675/mo with extra directed to Credit Card

= 4 yr 2 mo to payoff

Avalanche is the mathematically optimal payoff order because it minimizes interest paid by attacking the highest-rate balance first. Order: Credit Card → Car Loan → Student Loan.

Debt avalanche method

Avalanche total paid

starting debt + simulated interest under avalanche

$28,000 + $5,155

= $33,155

Under avalanche you pay $5,155 of interest and clear the balances in 4 yr 2 mo. Source: month-by-month amortization simulation.

Amortization simulation output

Snowball payoff path

monthly interest = balance × APR ÷ 12; extra payment goes to the lowest balance debt

$675/mo with extra directed to Credit Card

= 4 yr 2 mo to payoff

Snowball prioritizes quick wins by clearing the smallest balance first, even if it is not the highest APR debt. Order: Credit Card → Car Loan → Student Loan.

Debt snowball method

Interest saved with Avalanche

snowball total interest − avalanche total interest

$5,155 − $5,155

= $0

Both methods produce similar interest costs when rates and balances are already close together.

Comparison of simulated total interest

Months saved with Avalanche

snowball months − avalanche months

50 − 50

= 0 months

Both strategies take the same amount of time when your balances and APRs produce nearly identical payoff paths.

Comparison of simulated payoff timelines