Debt Calculator

The calculator aggregates your individual liabilities into a single metric, TotalDebt = Debt1 + Debt2 + ... + DebtN, while summing your minimum monthly obligations as TotalPmt = Pmt1 + Pmt2 + ... + PmtN. It then models amortization schedules for different strategies: the Snowball method prioritizes accounts from the smallest balance to the largest for psychological wins, the Avalanche method tackles the highest interest rates first to minimize overall financial cost, and Consolidation rolls your liabilities into a single new loan structure governed by the consolidation amount, term, and upfront fees (ConFeePre).

Imagine you have two primary debts: Debt 1 of $5,000 with an 18% APR requiring a $150 minimum monthly payment, and Debt 2 of $10,000 with a 10% APR requiring a $200 minimum monthly payment. Your TotalDebt is $15,000, and your TotalPmt is $350. Under the Avalanche method, you allocate extra cash toward Debt 1 first because of its higher 18% interest rate. Once Debt 1 is paid off, you roll its $150 minimum plus your extra cash directly into Debt 2. This mathematical cascading effect shrinks the amortization timeline dramatically compared to paying minimums indefinitely, saving you hundreds of dollars in cumulative interest.

To maximize the utility of this calculator, always input your exact Annual Percentage Rates (APR) rather than estimated guesses, as small interest rate variations significantly impact long-term payoff timelines. When considering a consolidation loan, ensure that any upfront origination fees do not outweigh the interest savings of the lower rate. Finally, commit to a fixed monthly payment budget that matches or exceeds your combined minimums to guarantee continuous progress.