Debt Payoff Calculator
Map a clear, month-by-month path to becoming completely debt-free.
About the Debt Payoff Calculator
This Debt Payoff Calculator is a powerful financial planning tool in Excel designed for anyone managing multiple debts who wants a clear path to becoming debt-free. It supports up to five debts with fields for balance, interest rate, and monthly payment, and automatically calculates months to payoff and total interest paid for each. Choose between Avalanche or Snowball payoff strategies using the built-in dropdown. A detailed Payoff Schedule sheet projects balances month by month for 60 months, while a stacked area chart visualizes how each debt shrinks over time. Conditional formatting color-codes interest rates by severity. Tackling credit card balances specifically? The Credit Card Payoff Calculator offers a side-by-side minimum-versus-custom payment comparison.
Debt Payoff Calculator Features
- Supports up to 5 debts with balance, interest rate, and payment fields
- Avalanche and Snowball payoff strategy comparison via dropdown
- Detailed 60-month payoff schedule projecting balances month by month
- Stacked area chart visualizing how each debt shrinks over time
- Conditional formatting color-codes interest rates by severity
How to Use This Debt Payoff Calculator in Excel
- 1
Enter your debts
Input up to 5 debts with their current balance, annual interest rate, and monthly payment amount.
- 2
Choose a payoff strategy
Select Avalanche (highest rate first) or Snowball (lowest balance first) from the strategy dropdown.
- 3
Review payoff timeline
Check the calculated months to payoff and total interest for each debt on the summary sheet.
- 4
Explore the payoff schedule
Navigate to the Payoff Schedule sheet and area chart to see how each debt balance decreases month by month.
Debt Payoff Calculator FAQ
- What is the difference between Avalanche and Snowball strategies?
- Avalanche targets the highest interest rate debt first to minimize total interest paid. Snowball targets the lowest balance first for quick psychological wins. The calculator lets you compare both.
- How many debts can I track?
- The calculator supports up to 5 individual debts, each with its own balance, interest rate, and monthly payment fields.
- How far into the future does the payoff schedule project?
- The Payoff Schedule sheet projects balances month by month for up to 60 months (5 years), with the stacked area chart showing the visual trajectory.
