This calculator estimates how long repayment will take and helps borrowers compare snowball, avalanche, and fixed-payment plans.
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Enter each balance, annual interest rate, minimum payment, and any extra monthly amount. Choose avalanche to target the highest rate first, or snowball to target the smallest balance first, while continuing minimum payments on the other debts.
Monthly interest = current balance x annual interest rate / 12. Principal paid = payment - monthly interest, and new balance = current balance + monthly interest - payment; the calculation repeats each month until every balance reaches zero.
A $6,000 card balance at 18% APR accrues $90 in interest during the first month. With a $300 payment, $210 reduces principal, leaving a new balance of $5,790.
Avalanche usually costs less because it attacks the highest interest rate first. Snowball can provide quicker account closures, which some people find easier to stick with.
The balance will grow if the payment is less than the interest charged. Increase the payment, seek a lower rate, or contact the lender before the arithmetic gets ruder.
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