Debt payoff calculator
Your debts
Balance, interest rate (APR) and the minimum monthly payment for each.
On top of all the minimums. Even £25 makes a difference.
Debt free in
2 yrs 5 mths
paying £425 a month off £10,100 of debt
- Interest you will pay
- £1,987
- Saved vs minimums only
- £6,959
- Minimums only
- 15 yrs 4 mths
- Snowball instead
- 2 yrs 5 mths, £2,027 interest
Order you clear them
- 1Overdraftmonth 11
- 2Store cardmonth 13
- 3Credit cardmonth 23
- 4Car loanmonth 29
How to use it
Add each debt with its balance, interest rate (APR) and minimum monthly payment. You will find all three on your latest statement or in your banking app. Then add what extra you can pay each month on top of the minimums.
The calculator assumes rates stay the same and you add no new borrowing. When one debt is paid off, its minimum payment rolls onto the next one, which is what makes both methods speed up over time.
Make it go faster
- Move expensive card debt to a 0% balance transfer card, if you can get one.
- Put side hustle income straight onto your debts. Here are ways to earn more on the side.
- Cancel subscriptions you do not use and put the money on your target debt.
If you are struggling
If you cannot make your minimum payments, or you are borrowing to pay bills, talk to a free debt charity. Read where to get free debt help. Avoid companies that charge fees for debt advice.
Questions
Common questions
What is the debt avalanche method?
You pay the minimum on every debt, then put every spare pound on the debt with the highest interest rate. When it is cleared, you move to the next highest. It always costs the least interest.
What is the debt snowball method?
You pay the minimum on every debt, then put every spare pound on the smallest balance first. Clearing whole debts quickly keeps you motivated, although it can cost a little more interest.
Which method is best?
The one you will stick to. Avalanche saves the most money. Snowball gives quicker wins. The calculator shows both, and the gap is often smaller than people expect.
Should I save or pay off debt?
Build a small emergency fund first, even £500 to £1,000, so a surprise bill does not go back on a credit card. Then put spare money on debts charging more interest than your savings earn.
Sources
This tool gives an estimate for general information. It is not tax advice. Check your own position on GOV.UK or with an accountant.