List your debts, add any extra payments you can make, and get the cheapest order to clear them, with a payment schedule for each.
Debts are listed in the order they are paid off. The plan assumes you take on no new debt.
This calculator uses the debt avalanche method. You pay the minimum on every debt, and any extra money goes to the debt with the highest interest rate. When that debt is paid off, its payment is added to the next highest, and the plan rolls on until every debt is gone. Because you attack the most expensive interest first, you pay the least overall. It works for any mix of debts, such as credit cards, car loans, student loans and mortgages.
Extra money makes a big difference. You can add a regular extra amount each month, a larger one once a year, such as a bonus or tax refund, paid in the first month of each year, and a one-time payment in a month you choose. All of it goes to the highest-rate debt first. With the fixed total option switched on, the payments you were making on a cleared debt are moved to the rest, so your monthly outlay never changes but the debts disappear faster.
The summary shows how long it takes to become debt free, the total you will pay and the total interest. The table shows each debt in payoff order, with its payoff length, interest, total payments and the payment you make each month. Compare a plan with and without extra payments to see how much time and interest they save.
It is a payoff plan where you pay the minimum on all debts and put every spare dollar on the debt with the highest interest rate. When that debt is cleared, you move to the next highest rate. It usually saves the most interest.
It means your total monthly payment stays the same. When one debt is paid off, the money that was going to it is added to the next debt, which speeds up the payoff of the rest.
If the payment on a debt is no more than the interest it earns each month, the balance never falls. The calculator tells you which debt is the problem. Raise its payment or add extra money each month.
In the month number you enter. The amount is added to that month budget and goes to the highest-rate debt after all the minimum payments are made.
No. The plan assumes you take on no new debt while you pay these off. New borrowing would add to your balances and slow the plan.
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