How the maths works
How to use it
- List every debt: credit cards, car loans, student loans, medical bills, buy-now-pay-later, money owed to family.
- Enter the balance, the APR and the minimum payment for each. The APR is on your statement; if you cannot find it, call and ask.
- Read the "Attack This First" result — that is the avalanche target.
- Take that debt to the debt payoff calculator and see what an extra $25 a month does to it.
A worked example
A $4,200 card at 24.9%, a $9,000 car loan at 9.5% and a $14,000 student loan at 5.5% total $27,200 — and cost about $2,675 a year in interest alone. The card is 15% of the balance but 39% of the annual interest. That is the entire argument for the avalanche method in one line.
Where this sits in the Financial Literacy resource
A calculator tells you where you are. It does not tell you what to do next, and a number without a plan behind it tends to produce anxiety rather than progress. These stages are free, need no account, and cover the decision this calculator is measuring.
Common questions
Which debt should I pay off first?
Mathematically, the one with the highest interest rate — the avalanche method — because it minimises total interest paid. The snowball method targets the smallest balance instead, which clears individual debts faster and some people stick with it better. Both work; the avalanche costs less and the snowball feels better sooner.
Should I pay off debt or save first?
Get a small $1,000 buffer in place first, then attack high-interest debt hard. Without any cushion the next unexpected expense goes straight back onto the card and undoes the progress. Once the high-interest debt is gone, finish the three-to-six month emergency fund.
Do medical bills belong on this list?
Yes, but treat them differently. Medical debt often carries no interest, is frequently negotiable, and unpaid medical collections under $500 no longer appear on consumer credit reports. Always ask for an itemised bill and a financial assistance application before paying — nonprofit hospitals are required to have one.
What this calculator is not
It is an educational model, not a projection and certainly not advice. It knows nothing about your income, your state, your debts or your benefits status, and it ignores taxes and fees unless the page says otherwise. If you receive SSI or SSDI some of this maths works differently and getting it wrong can cost you eligibility — start with the Disability Wealth Guide instead. Our sourcing and correction policy is on the editorial standards page.
Nothing here is stored. Every calculation runs in your browser. No numbers are transmitted, logged or saved to any server, and no account is required. Close the tab and it is gone.