Debt payoff planner
Add your debts, pick a method, and see the date you'll be debt-free. Then see how much faster a little extra gets you there.
BudgetHelp's calculators give estimates based on what you enter. They're for education and planning, not financial, tax or investment advice. Check important decisions with a qualified professional.
How this debt calculator works
Each month, the planner adds interest to every balance, pays each minimum, then sends your extra amount to one target debt. When a debt hits zero, its minimum payment rolls into the next target. That rollover is what makes both methods speed up over time.
The grey line shows what happens if you only ever pay the minimums. The gap between the two lines is time and interest you keep.
Avalanche or snowball?
Avalanche is the math winner: higher-rate debt costs you more each month, so clearing it first saves the most interest. Snowball is the motivation winner: paying off a small balance fast feels great and helps many people stick with the plan.
If the difference in interest is small, pick the one you'll actually keep doing. Read more in debt avalanche vs. snowball.
Find your extra. Your budget planner shows how much of your pay goes to wants. Moving even $50 from wants to debt can change your debt-free date by months.
Debt payoff questions
What's the difference between the avalanche and snowball methods?
Both pay the minimum on every debt and put any extra toward one target. Avalanche targets the highest interest rate first, which saves the most interest. Snowball targets the smallest balance first, which gives you quick wins. When a debt is paid off, its payment rolls into the next one.
Should I save money or pay off debt first?
Many people keep a small starter emergency fund, often $1,000 to $2,000, while they pay down high-interest debt like credit cards. That way a surprise bill doesn't go straight back on the card. The right balance depends on your situation.
What if I can't afford my minimum payments?
Call your lenders before you miss a payment and ask about options. You can also talk to a non-profit credit counselling agency or a Licensed Insolvency Trustee. The Financial Consumer Agency of Canada (canada.ca/money) explains your options.
Why does paying only the minimum take so long?
On a credit card at around 20% interest, much of each minimum payment goes to interest, not the balance. Even a small extra amount each month goes straight to the balance and can cut years off your payoff.