Debt Payoff Calculator
See your debt-free date, compare snowball vs avalanche vs minimums only, and find out exactly how much interest you can save. With a lump-sum windfall option for tax refund and RRSP season.
Your Debts
Pre-filled with typical Canadian examples. Replace with your real balances and rates.
| Type / Details | Balance ($) | APR (%) | Min. Payment ($/mo) |
|---|
Total: $0 | Monthly minimums: $0/mo
* Highlighted fields are estimated. Always replace with figures from your actual statement. Estimates based on Canadian averages: credit card ~20.99% / 2% min; student loan ~6.45% / 1.2% min; car loan ~7.99% / 2% min; personal loan ~9.99% / 1.8% min; line of credit ~8.45% / interest-only min; mortgage ~4.84% / 0.4% min.
Extra Payments
Snowball vs Avalanche: Which Is Right for You?
The Avalanche
Target the debt with the highest interest rate first. Mathematically optimal - you pay the least total interest and get out of debt fastest.
Best for: people who are motivated by math and can stay disciplined even when progress feels slow on a large balance.
The Snowball
Target the smallest balance first. You'll pay more interest overall, but eliminating individual debts quickly builds real momentum.
Best for: anyone who has started and stopped debt payoff before, or who needs an early win to stay the course.
How the rollover works
This calculator assumes you pay all minimum payments first, then put every extra dollar toward one target debt. When that target is paid off, its freed minimum automatically becomes part of your extra on the next one. That is why momentum builds - your payments genuinely snowball over time.
Why lump sums matter more than you think
A lump sum applied early in your payoff reduces the principal immediately - so every subsequent month accrues less interest. The earlier in the process you apply it, the more powerful the effect. The average Canadian tax refund is around $1,800. Applied to a 19.99% credit card, that is not a small number.
Frequently Asked Questions
Is the debt snowball or avalanche method faster?
The avalanche method is almost always faster because you eliminate high-interest charges sooner. The snowball can occasionally be comparable if your smallest debts also happen to have high rates, but in general the avalanche wins on time and total interest paid.
What counts as a "minimum payment"?
For credit cards, the minimum is typically 2-3% of your balance or $10, whichever is higher - so it changes monthly as your balance drops. For simplicity, this calculator uses fixed minimums. If your actual minimums drop over time, your real payoff will be slightly slower unless you maintain the same payment level.
Should I pay off debt or invest in my TFSA/RRSP?
A rough rule: if your debt's interest rate is higher than your expected investment return, pay the debt first. A 19.99% credit card almost always wins over market returns. A 4% student loan is a closer call - especially once you factor in the RRSP tax deduction. There's no single right answer, but the debt payoff rate of return is guaranteed; market returns are not.
What about consolidation loans or balance transfers?
Both can work well - if you use them to lower your rate without extending your timeline and without accumulating new debt. A balance transfer to a 0% promotional card, for instance, would show dramatically in this calculator. Run the numbers with the new rate and see.