Use this calculator to estimate how long it will take to pay off multiple debts using either the Debt Avalanche or Debt Snowball method, and how much interest you'll save by making extra payments.
When tackling multiple debts, two popular strategies can help you accelerate your payoff journey: Debt Avalanche and Debt Snowball. Both methods aim to free up cash flow by eliminating individual debts, but they differ in their approach.
Debt Avalanche
The Debt Avalanche method prioritizes paying off debts with the highest annual interest rates first. You make minimum payments on all your debts, and any extra money you have is directed towards the debt with the highest interest rate. Once that debt is paid off, you take the money you were paying on it (its minimum payment plus any extra you were applying) and add it to the minimum payment of the debt with the next highest interest rate. This continues until all debts are paid.
Pros: This method saves you the most money in interest over the long run because you're attacking the most expensive debts first.
Cons: It can take longer to pay off the first debt, which might be discouraging for some.
Debt Snowball
The Debt Snowball method focuses on psychological wins. You prioritize paying off debts with the smallest balances first, regardless of their interest rates. You make minimum payments on all your debts, and any extra money you have is directed towards the debt with the smallest balance. Once that debt is paid off, you take the money you were paying on it (its minimum payment plus any extra you were applying) and add it to the minimum payment of the debt with the next smallest balance. This creates a "snowball" effect as you gain momentum and free up more money with each debt paid off.
Pros: Provides quick wins and psychological motivation, which can be crucial for staying on track.
Cons: You might pay more in interest over time compared to the Debt Avalanche method, as higher-interest debts might linger longer.
How to Use This Calculator
Enter Debt Details: Input the name, current balance, annual interest percentage, and minimum monthly payment for up to three of your debts. If you have fewer than three, leave the extra fields blank or enter '0' for balance/payment.
Specify Additional Payment: Enter any extra amount you can afford to pay towards your debts each month. This is the key to accelerating your payoff.
Choose a Strategy: Select either 'Debt Avalanche' or 'Debt Snowball' from the dropdown menu.
Calculate: Click the 'Calculate Payoff' button to see your estimated payoff time, total interest paid, and total amount paid.
Remember, consistency is key. Even small additional payments can make a significant difference in how quickly you become debt-free and how much interest you save.
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function calculateDebtPayoff() {
var debts = [];
// Function to safely parse numbers
function parseNum(id) {
var val = parseFloat(document.getElementById(id).value);
return isNaN(val) || val 0) {
debts.push({
name: debt1Name,
originalBalance: debt1Balance, // Store original for comparison
balance: debt1Balance,
annualInterestRate: debt1APR,
minPayment: debt1MinPayment,
isPaidOff: false,
payoffMonth: null
});
}
// Get debt 2 inputs
var debt2Name = document.getElementById("debt2Name").value || "Debt 2";
var debt2Balance = parseNum("debt2Balance");
var debt2APR = parseNum("debt2APR");
var debt2MinPayment = parseNum("debt2MinPayment");
if (debt2Balance > 0) {
debts.push({
name: debt2Name,
originalBalance: debt2Balance,
balance: debt2Balance,
annualInterestRate: debt2APR,
minPayment: debt2MinPayment,
isPaidOff: false,
payoffMonth: null
});
}
// Get debt 3 inputs
var debt3Name = document.getElementById("debt3Name").value || "Debt 3";
var debt3Balance = parseNum("debt3Balance");
var debt3APR = parseNum("debt3APR");
var debt3MinPayment = parseNum("debt3MinPayment");
if (debt3Balance > 0) {
debts.push({
name: debt3Name,
originalBalance: debt3Balance,
balance: debt3Balance,
annualInterestRate: debt3APR,
minPayment: debt3MinPayment,
isPaidOff: false,
payoffMonth: null
});
}
var additionalPayment = parseNum("additionalPayment");
var payoffStrategy = document.getElementById("payoffStrategy").value;
var resultDiv = document.getElementById("result");
resultDiv.innerHTML = ""; // Clear previous results
if (debts.length === 0) {
resultDiv.innerHTML = "Please enter details for at least one debt with a balance greater than 0.";
return;
}
var totalMonths = 0;
var totalInterestPaid = 0;
var totalPrincipalPaid = 0;
var allDebtsPaidOff = false;
var maxMonths = 1200; // Safety break: 100 years
var activeDebts = JSON.parse(JSON.stringify(debts)); // Deep copy to simulate payoff
// Initial check for minimum payments vs. interest
var totalInitialMonthlyInterest = activeDebts.reduce(function(sum, debt) {
return sum + (debt.balance * (debt.annualInterestRate / 12 / 100));
}, 0);
var totalMinPayments = activeDebts.reduce(function(sum, debt) { return sum + debt.minPayment; }, 0);
if (totalMinPayments + additionalPayment 0; })) {
resultDiv.innerHTML += "Warning: Your total monthly payments might not be enough to cover the accruing interest. It may take a very long time or never pay off.";
}
while (!allDebtsPaidOff && totalMonths < maxMonths) {
totalMonths++;
var monthlyPaymentBudget = additionalPayment; // Extra payment available for this month
// Step 1: Calculate interest and apply minimum payments
for (var i = 0; i < activeDebts.length; i++) {
var debt = activeDebts[i];
if (debt.isPaidOff) {
monthlyPaymentBudget += debt.minPayment; // Roll over min payment from paid-off debt
continue;
}
var monthlyInterestRate = debt.annualInterestRate / 12 / 100;
var interestThisMonth = debt.balance * monthlyInterestRate;
totalInterestPaid += interestThisMonth;
debt.balance += interestThisMonth; // Interest accrues
var paymentToApply = Math.min(debt.minPayment, debt.balance);
debt.balance -= paymentToApply;
totalPrincipalPaid += paymentToApply;
if (debt.balance 0) {
var debtsToPrioritize = activeDebts.filter(function(d) { return !d.isPaidOff; });
if (payoffStrategy === "avalanche") {
debtsToPrioritize.sort(function(a, b) {
return b.annualInterestRate – a.annualInterestRate; // Highest interest first
});
} else { // snowball
debtsToPrioritize.sort(function(a, b) {
return a.balance – b.balance; // Smallest balance first
});
}
for (var i = 0; i < debtsToPrioritize.length; i++) {
var debt = debtsToPrioritize[i];
if (monthlyPaymentBudget <= 0) break; // No more extra payment to distribute
var paymentToApply = Math.min(monthlyPaymentBudget, debt.balance);
debt.balance -= paymentToApply;
totalPrincipalPaid += paymentToApply;
monthlyPaymentBudget -= paymentToApply;
if (debt.balance <= 0) {
debt.isPaidOff = true;
debt.payoffMonth = totalMonths;
// The remaining monthlyPaymentBudget will naturally go to the next debt.
}
}
}
allDebtsPaidOff = activeDebts.every(function(d) { return d.isPaidOff; });
}
var years = Math.floor(totalMonths / 12);
var remainingMonths = totalMonths % 12;
var totalPaid = totalPrincipalPaid + totalInterestPaid;
var output = "
Debt Payoff Summary
";
if (allDebtsPaidOff) {
output += "Time to Pay Off All Debts: " + years + " years and " + remainingMonths + " months";
output += "Total Interest Paid: $" + totalInterestPaid.toFixed(2) + "";
output += "Total Amount Paid (Principal + Interest): $" + totalPaid.toFixed(2) + "";
output += "
Individual Debt Payoff Dates:
";
for (var i = 0; i < debts.length; i++) {
var originalDebt = debts[i];
var paidOffDebt = activeDebts.find(function(d) { return d.name === originalDebt.name; });
if (paidOffDebt && paidOffDebt.payoffMonth) {
var poYears = Math.floor(paidOffDebt.payoffMonth / 12);
var poMonths = paidOffDebt.payoffMonth % 12;
output += "
" + originalDebt.name + ": Paid off in " + poYears + " years and " + poMonths + " months.
" + originalDebt.name + ": Not paid off within " + (maxMonths / 12) + " years (payments too low or balance too high).
";
}
}
output += "
";
} else {
output += "Warning: It was not possible to pay off all debts within " + (maxMonths / 12) + " years with the given payments. Consider increasing your 'Additional Monthly Payment' or reducing debt.";
output += "Months Simulated: " + totalMonths + "";
output += "Total Interest Paid (so far): $" + totalInterestPaid.toFixed(2) + "";
output += "Remaining Debts:
";
for (var i = 0; i < activeDebts.length; i++) {
var debt = activeDebts[i];
if (!debt.isPaidOff) {
output += "