Debt Payoff Calculator
Debt payoff
Two common methods of paying off debts are the avalanche method, where debts with the highest interest rates are paid off first, and the snowball method, where the smallest debts are paid off first. Find out how much interest you may save by using one method over the other.
Amount saved with the avalanche method
$ 4,546
- Estimated total amount paid using the avalanche method: $ 30,378
- Estimated total amount paid using the snowball method: $ 34,924
This calculator is for information purposes only and is not intended to provide investment, legal, tax or accounting advice, nor is it intended to indicate the performance, availability or applicability of any product or service. The accuracy of this and its applicability to your circumstances is not guaranteed. You may wish to consult an appropriate and qualified advisor about your unique situation. This calculator is provided by EVERFI. EVERFI is not affiliated with this site's sponsor, owner or any affiliate thereof. You should always consult with your financial planner, attorney and/or tax advisor as needed. Results and analyses are based exclusively on information provided by you and no assumptions are made as to your particular situation. Projection is hypothetical in nature and not predications or guarantees. All investments carry a degree of risk and past performance is not a guarantee of future results. Asset allocation and diversification do not ensure a profit and do not protect against loss in declining markets.
Loan and debt payoff calculator
Debt has a way of accumulating quickly, but paying it off isn't as fast. With a strong commitment and an effective plan in place, you can find financial freedom. Empower's Debt Payoff Calculator helps you estimate how long it will take you to pay off your debt.
How the debt payoff calculator works
Before you can use the debt payoff calculator, you'll need to have the following information on hand:
Current debt balances: The current balance due for each outstanding debt.
Interest rates: The annual interest rate for each debt.
- Minimum monthly payments: The minimum monthly payments you expect to make toward this debt each month.
Once you enter this information in the appropriate fields, Empower's debt payoff calculator automatically calculates the estimated timeline, the total interest you'll pay, and how much you can anticipate saving over time.
Additional financial planning resources:
Debt repayment strategies
Consumers commonly use the snowball and avalanche methods to pay down their debt.
Snowball vs avalanche method
With the snowball method, you pay off debt from the smallest to the largest remaining balance. While this option is ideal for those who want quick results, you could wind up paying more in interest over time.
If you use the avalanche method, you'll pay off debts with the highest interest rates first. While it can take a little longer to see results, you may save money.
Both repayment methods can help you pay off your debt over time and improve your finances. If you need quick results to help you stay motivated, the snowball method may be the best option. However, if you want to save as much money as possible, the avalanche method is often the right choice. Use Empower's debt calculator payoff to compare options.
Tips for paying off debt faster
Creating and sticking to a realistic budget is key to paying off debt faster. Look closely at where you're spending money and find ways to cut unnecessary expenses. This can free up money you can use toward debts, including student loans. You can also take on a second job or start a side hustle and use those earnings.
If you're looking for a fast way to pay down your debt, you may want to consider applying for a balance-transfer credit card or a consolidation loan. If you qualify, you may obtain better interest rates, and you'll just have one monthly payment to make.
Take the next step
You can plan for financial freedom today. Use Empower's debt payoff calculator to find out how long it will take to pay off your debt.
Contact Empower to take control of your debt today.
FAQ
What is the best debt payoff method?
Choosing the best repayment method depends on several factors, including the type of debt you have and the remaining balance. Empower's loan repayment calculator can help you compare your options.
What is the fastest way to pay off debt?
The fastest way to pay off debt is to set a firm budget, make consistent payments, and develop a debt payoff strategy.