Juggling credit cards, a line of credit or a loan? This debt payoff calculator (also called a debt repayment calculator) shows how long it will take to become debt-free with the amount you can pay each month, how much interest you’ll pay, and which debt to pay off first.
Debt repayment calculatorList your debts and what you can pay each month. See when you’ll be debt-free.
Your debts
Highest interest rate first
Also called the avalanche method
0
Smallest balance first
Also called the snowball method
0
How the calculator works
Each month, it adds interest to every debt, pays the minimum on each one, and puts the rest of your monthly amount toward one debt at a time. When a debt is paid off, its payment rolls over to the next one. It compares two common ways to choose which debt gets the extra money:
- Highest interest rate first (avalanche): puts extra money on the most expensive debt. This usually costs the least in total interest.
- Smallest balance first (snowball): clears your smallest debt first, so you see progress sooner. It can cost a little more in interest. For a month-by-month snowball plan, use our debt snowball calculator.
Rates and minimums are taken as fixed, and the calculator assumes no new borrowing. Real interest is charged daily, so your statements will differ a little.
Worked example
| Debt | Balance | Interest rate | Minimum payment |
|---|---|---|---|
| Credit card 1 | $5,000 | 20.99% | $150 |
| Credit card 2 | $1,200 | 19.99% | $36 |
| Line of credit | $7,000 | 9.5% | $140 |
| Plan, paying $500 a month | Debt-free in | Total interest |
|---|---|---|
| Highest interest rate first | 2 years 8 months | $2,462 |
| Smallest balance first | 2 years 8 months | $2,479 |
| Fixed minimum payments only ($326 a month) | 4 years 8 months | $5,020 |
Here both plans finish at the same time, and paying the highest rate first saves about $17. Paying the smallest balance first clears Credit card 2 in 7 months, a quick win that some people find keeps them going. Either plan saves more than $2,500 in interest compared with paying only the minimums.
Tips to get out of debt faster
- Pay more than the minimums. Even an extra $50 a month makes a real difference. See how minimums alone play out with our minimum payment calculator.
- Keep the same total payment as each debt is cleared, so the freed-up money speeds up the next one.
- Stop adding new debt. Put cards away while you pay them down.
- Look at lowering your rate. A lower-interest card, a balance transfer or a consolidation loan can help, but check the fees.
- Get free help if you’re struggling. Non-profit credit counselling agencies in Canada can help you build a plan.
Frequently asked questions
Should I pay off the highest interest rate or smallest balance first?
Paying the highest rate first usually saves the most money. Paying the smallest balance first gives faster wins, which can help you stay on track. Enter your debts above to see how big the difference is for you; often it’s small.
How long will it take to pay off my debt?
It depends on your balances, rates and what you can pay each month. Enter them above. For example, $13,200 across two credit cards and a line of credit, paid at $500 a month, takes about 2 years 8 months.
Does the calculator work for loans and lines of credit?
Yes. Enter any debt with a balance, an interest rate and a monthly minimum payment, such as a credit card, line of credit, car loan or personal loan.
Related reading
- Credit card payoff calculator: the payment you need to clear a card by a date
- Consumer proposal calculator: estimate a proposal payment
- Debt snowball calculator: your payoff order, smallest balance first
- Credit card interest calculator: interest per month and payoff time for one card
- Minimum payment calculator: what paying only the minimum costs
- All calculators
- Debt-to-income ratio calculator: see how much of your income goes to debt
- Daily interest calculator: interest charged day by day
- Line of credit vs credit card: which costs less to borrow