Finance

Debt Payoff Calculator

Calculate when you'll be debt-free and how much interest you'll save, comparing the two most common payoff strategies (Avalanche and Snowball) against your actual debts — up to 3 debts, with an optional extra monthly payment.

Current balance — Debt 1

Annual interest/profit rate % — Debt 1

Minimum monthly payment — Debt 1

Current balance — Debt 2 (optional)

Annual interest/profit rate % — Debt 2

Minimum monthly payment — Debt 2

Current balance — Debt 3 (optional)

Annual interest/profit rate % — Debt 3

Minimum monthly payment — Debt 3

Extra monthly payment you can put toward payoff (optional)

Payoff strategy

Enter your details and press "Calculate" to see your result here.

About this calculator

What the result means

After any monthly payment, part of it covers the interest that accrued on the remaining balance, and only the rest reduces the principal. That's why every extra riyal you pay above the minimum compounds into reduced future interest over time. This calculator simulates payoff month by month using two well-known strategies: 'Avalanche' directs any extra payment to the highest-interest debt first (the mathematically cheapest overall), while 'Snowball' directs it to the smallest balance first (giving you quick wins that keep you motivated). In both cases, once a debt is fully paid off, its monthly payment automatically rolls into the next target debt instead of stopping — this is what noticeably speeds up payoff compared to paying each debt separately with no redirection.

Recommendation

If your primary goal is the lowest total cost, choose Avalanche. If you need psychological momentum to keep going (especially with several small debts that feel overwhelming), Snowball might suit you better even if its total cost is slightly higher — actually sticking with the plan matters more than the theoretical optimum. Always try to pay more than the minimum when you can, and if you can negotiate a lower interest rate (like a balance transfer to a lower-rate card), that outweighs the effect of either ordering strategy.

Frequently asked questions

Which is better: Avalanche or Snowball?

Mathematically, Avalanche always costs the same or less than Snowball, since it targets the most expensive debt (by interest) first. But behavioral research shows many people stick with a Snowball plan longer because it delivers quick 'wins' (fully clearing a debt fast), which can outweigh the cost difference if actual follow-through matters more than the theoretical number.

Why does the calculator only support 3 debts?

A current technical limitation of the site — fields are fixed in number and don't dynamically support an unlimited list of debts. If you have more than 3 debts, group similar-rate debts together as one line (sum the balances, use a weighted-average rate), or run the calculator in two separate passes.

Does the calculator handle interest-free debts (like a benevolent/qard hassan loan)?

Yes, just enter 0 in the interest/profit rate field for that debt — the calculator treats it with zero accruing interest, and includes it in the priority ordering like any other debt.

My actual minimum payment isn't in the calculator, what should I do?

Use your latest statement or the creditor's app to find your current actual minimum payment, since it changes as the balance shrinks on most credit cards. Enter the most recently shown figure as a realistic starting point.

Sources

Debt Avalanche vs. Debt Snowball methods — Investopedia