NationalDebtFacts

Credit card and loan payoff calculator

List your debts and what you can pay each month. See when you are debt-free and how much interest the avalanche and snowball methods cost.

Your debts

  • Debt 1
1 of 6

Total monthly budget: $174

You are debt-free in 2 years 10 months either way, paying about $1,522 in interest.

Avalanche

Extra money goes to the highest APR first.

Debt-free in
2 years 10 months
Total interest
$1,522
Total paid
$5,872

Payoff order

  1. Credit card (example) · month 34

Snowball

Extra money goes to the smallest balance first.

Debt-free in
2 years 10 months
Total interest
$1,522
Total paid
$5,872

Payoff order

  1. Credit card (example) · month 34

Assumes fixed APRs, no new charges or fees, and that the monthly budget stays the same: when a debt is paid off, its minimum rolls into the next one.

Educational estimate, not financial advice. Everything is calculated in your browser — nothing you enter is sent anywhere or saved.

How this calculator works

The calculator simulates every month. Interest is added to each balance at its APR divided by 12, every debt receives its minimum payment, and the rest of your monthly budget — your minimums plus the extra payment — goes to one debt at a time: the highest APR for the avalanche, the smallest starting balance for the snowball. When a debt is paid off, its minimum rolls into the next one, so the budget stays constant.

It assumes fixed APRs, no new purchases, no fees and payments made on time. Plans that take longer than 50 years are reported as not paid off.

The example card starts at $4,350, the average credit card balance per adult with a credit report1, with an example APR of 22% and a minimum of $124 (1% of the balance plus one month’s interest). Replace them with your own figures. Household interest costs move with the same rates as the interest on the national debt, which follow the Fed’s policy rate; the government’s own balance is shown per person.

Common questions

Which is better, the avalanche or the snowball method?

The avalanche method — extra money to the highest interest rate first — always costs the same or less in interest. The snowball method — smallest balance first — clears individual debts sooner, which many people find motivating. If the difference in interest is small, the method you will stick to is the better one.

How long does it take to pay off a credit card with minimum payments?

Paying a fixed $124 a month on a $4,350 balance at 22% APR takes 4 years 9 months and costs $2,683 in interest. Adding $100 a month cuts that to 2 years 1 month and $1,077. If the minimum shrinks as the balance falls, as many issuers calculate it, paying only the minimum takes far longer.

What happens if my minimum payment does not cover the interest?

Then the balance grows even though you pay every month. The calculator warns you when a minimum is at or below the first month’s interest. Any extra payment, a lower rate through a hardship program, or a balance transfer changes that.

Should I include my mortgage or student loans?

You can, but low-rate, long-term loans rarely change the order under the avalanche method and can make the timeline hard to read. Most people use this for credit cards, personal loans and car loans.

1 Credit card debt per capita, United States, Q4 2025. “Per capita” in this dataset means per adult with a credit report, not per resident. Source: New York Fed Consumer Credit Panel / Equifax.

Sources

Household debt data: New York Fed Consumer Credit Panel / Equifax. © 2026 Federal Reserve Bank of New York. Content from the New York Fed subject to the Terms of Use at newyorkfed.org.

All figures are fetched from the publishers above when this site is built; your browser does not contact them. This site is independent and is not affiliated with, sponsored or endorsed by the Federal Reserve System, any Federal Reserve Bank or any government agency. Nothing here is financial advice.