Debt-Free Date Calculator

Avalanche or snowball?

The avalanche method pays the highest-rate debt first, which normally costs the least interest. The snowball method clears the smallest balance first, which can feel motivating because debts disappear sooner.

Try both and compare the date and total interest. The better choice is the one you will actually stick to.

Making your date arrive sooner

Even a small extra payment each month can bring the date forward by months. If you are unable to keep up with the minimums, speak to your creditors and a free debt adviser as soon as you can.

How to use this calculator

1. Add each debt with its balance, APR and minimum monthly payment.
2. Enter any extra amount you can pay each month on top of the minimums.
3. Choose avalanche (highest interest first) or snowball (smallest balance first) and read your debt-free date.

How it is calculated

Each month interest is added to every balance at APR ÷ 12, the minimum is paid on every debt, and everything left over goes to the debt chosen by your method.

When a debt is cleared, its minimum payment is added to the amount available for the next one.

The date is counted in whole months from the start date you pick.

Worked example

Three debts totalling £9,300 (a £2,500 card at 22.9%, a £6,000 loan at 9.9% and an £800 store card at 29.9%), with minimums of £255 and £100 extra a month, are cleared in 32 months with £1,718.41 of interest.

Assumptions and limits

• Rates and minimum payments stay the same and no new borrowing is added.
• Real minimum payments on cards usually fall as the balance falls. Entering a fixed amount is the cautious assumption.
• Fees, promotional rates and missed-payment charges are not included.