See how long it'll take to pay off your debt, along with how extra payments will adjust your timeline.
When I teach modified saving rate, I include additional debt paydown as saving, because this is money you're allocating to debt that you could have allocated elsewhere.
I like giving bonus points, and you like receiving them, so... here we are. ☺️
Use this calculator to assess your options.
See how extra payments can help you get debt-free faster and save on interest.
This calculator helps you build a concrete plan to eliminate your debt. Enter your outstanding balances, interest rates, and minimum payments, and the calculator will show you exactly how long it will take to become debt-free — and how much total interest you'll pay along the way.
You can also compare two popular payoff strategies: the avalanche method (pay off highest-interest debt first) and the snowball method (pay off smallest balances first). Each approach has trade-offs, and this calculator shows you the real dollar difference between them.
This calculator shows the paydown timeline for one debt, but many people have multiple debts.
To make progress, put all of your additional payment toward one debt at a time. There are two popular approaches on how to sequence your debts.
The avalanche method prioritizes debts by interest rate, directing extra payments toward the highest-rate balance first. Mathematically, this saves you the most money in interest over time.
If you're motivated by optimizing every dollar, this is the way to go.
The snowball method prioritizes debts by balance size, targeting the smallest debt first. You'll pay slightly more in total interest, but the psychological wins of eliminating entire debts quickly can be powerful motivation to keep going.
The best strategy is the one you'll actually stick with. If the interest savings of the avalanche method motivate you, use that. If quick wins keep you on track, go snowball.
Either way, the most important thing is making consistent extra payments above the minimums.
Once you have a payoff plan, a few strategies can help accelerate it further. Look into balance transfer offers for high-interest credit card debt. Many cards offer 0% APR for 12-18 months, which lets 100% of your payment go toward principal.
If you have student loans, check whether you qualify for income-driven repayment plans or Public Service Loan Forgiveness. And for any debt type, calling your lender to negotiate a lower interest rate is always worth trying. The worst they can say is no.
The most important step is the one you've already taken: running the numbers and facing the full picture. A clear payoff plan is what turns your overwhelming problem into a series of manageable monthly steps. ⬥
Learn more about Nick's debut book, which The New York Times called "A fun, well-written primer on a subject that's usually a snooze."
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