Debt repayment calculator
Enter all your debts in one place. See the snowball method versus the avalanche method side by side, find out which saves you the most money, and see exactly how much earlier you could be debt-free by paying a little extra each month.
| Debt name | Balance | APR (%) | Min payment |
|---|
The most important thing about debt repayment is not which method you choose. It is whether you actually stick to it. Both the avalanche and snowball methods work if followed consistently. Pick the one that feels more motivating to you and set up a direct debit for the full payment amount so it happens automatically every month without requiring willpower.
Avalanche method
Pay minimums on everything, then put every extra pound toward the debt with the highest interest rate. When that is cleared, attack the next highest. Mathematically optimal — saves the most total interest.
Snowball method
Pay minimums on everything, then attack the smallest balance first regardless of rate. When cleared, roll that payment into the next smallest. Costs slightly more in interest but clearing debts quickly provides psychological wins that help people stay on track.
The power of extra payments
Even £50 extra per month above minimums can cut years off your repayment timeline and save hundreds in interest. The earlier in the repayment period you make extra payments, the bigger the impact because there is more balance for interest to compound on.
Debt consolidation
If you have several debts at different rates, a consolidation loan at a lower single rate may reduce your total interest. Use the personal loan calculator alongside this tool to model whether consolidation makes sense for your specific situation.
Please note: All calculations assume fixed interest rates and consistent monthly payments. Minimum payment figures are as entered. In practice, some lenders recalculate minimum payments as balances fall. Results are illustrative only. If you are struggling with debt, free support is available from StepChange (stepchange.org) and Citizens Advice. This is not financial advice.
What is a debt repayment calculator?
The debt repayment calculator models a plan for clearing multiple debts — credit cards, personal loans, car finance, overdrafts — by applying a total monthly payment across all debts according to either the avalanche or snowball strategy. It shows when each debt will be cleared, the total interest paid under each approach, and the overall payoff timeline.
Avalanche versus snowball
Avalanche method: Pay the minimum on all debts. Direct any extra payment to the debt with the highest interest rate first. When that debt is cleared, roll the freed-up payment to the next highest rate. This method minimises total interest paid and is mathematically optimal.
Snowball method: Pay the minimum on all debts. Direct any extra payment to the debt with the smallest balance first. When the smallest is cleared, roll the freed-up payment to the next smallest. This method creates quicker visible wins which can maintain motivation, even though it typically costs more in interest than the avalanche.
The right method is the one you actually follow. For some people, the motivational effect of clearing one balance completely outweighs the mathematical advantage of the avalanche. The calculator models both so you can see the interest cost difference and make an informed choice.
Frequently asked questions
Should I clear all debt before saving? The general principle is to clear high-interest debt (above 5 to 6%) before accumulating significant savings, because the cost of the debt exceeds the return on savings. However, maintaining a small emergency buffer (£500 to £1,000) before aggressively paying down debt is sensible — otherwise every unexpected cost goes back on the card. The next money move quiz covers this priority order in detail.
What about 0% deals? A 0% purchase or balance transfer deal should be included in the calculator at 0% interest. The priority in a debt repayment plan is typically to clear the highest-rate debt first and allow the 0% balance to run its course — as long as the balance can be cleared before the 0% period ends.
The information on this site is for educational and informational purposes only. Nothing on Be More Peter constitutes financial advice, and nothing should be treated as such. The calculators, articles and tools on this site are designed to help you understand financial concepts and run indicative numbers - they are not a substitute for professional advice tailored to your specific circumstances. Before making any financial decision - including decisions about mortgages, pensions, investments, savings or insurance — you should seek independent financial advice from a qualified adviser who is authorised and regulated by the Financial Conduct Authority (FCA). Calculator results are estimates based on the information you enter and the assumptions built into the tool. They are illustrative only and should not be relied upon as accurate projections. Rates, thresholds and rules change regularly - always verify figures with an appropriate professional or official source before acting on them. Be More Peter is not authorised or regulated by the FCA. The content on this site does not constitute a financial promotion.
Related tools and posts
- Credit card repayment calculator — single-card detail
- Monthly budget calculator — identify the available monthly payment
- What should your next money move be?
- Money lessons I learnt the hard way