Comparable
Change one thing
| Run A | Run B | |
|---|---|---|
| Starting debts | $3,000 + $1,000 | $3,000 + $1,000 |
| Monthly payment | $300 | $300 |
| Payoff order | Highest APR first | Smallest balance first |
Only the repayment order moved, so the difference belongs to the order.
See how your debts fit into one payoff plan.
A debt payoff calculation brings several balances into one timeline. It needs a balance, rate, and minimum payment for each account, plus the total amount available for debt payments each month.
Gather your numbers
Use a recent statement for each account. Record the current balance, APR, minimum payment, and any promotional rate ending soon. Keep separate balances with different rates separate where possible.
Your total monthly debt payment includes minimum payments. An extra payment is the amount left after those minimums, not an additional minimum for every account.
A recent statement
Four values go into the calculation.
- Statement balance
- $3,000
- Purchase APR
- 24.00%
- Minimum payment due
- $90
- Promotional rate ends
- None
- Available credit
- not needed
- Rewards balance
- not needed
Start with a budget example
Imagine two debts: a $3,000 balance at 24% APR with a $90 minimum, and a $1,000 balance at 12% APR with a $30 minimum. With a $300 monthly debt budget, $120 covers the stated minimums and $180 remains to allocate.
For the first payment, directing that extra amount to the higher-rate debt gives it $270 and the other debt $30. Directing it to the smaller debt gives that debt $210 and the larger debt $90.
One $300 monthly debt budget
- $90minimum · $3,000
- $30minimum · $1,000
- $180left to allocate
This example shows allocation only; it does not calculate a payoff date or savings.
Keep the comparison fair
Compare priorities using the same starting debts and total payment. Increasing the payment at the same time changes two things, making it harder to see what the repayment order contributed.
When an account reaches zero, a constant-budget comparison redirects its payment to remaining balances. Reducing the budget instead produces a different forecast.
Not comparable
Change two things
| Run A | Run B | |
|---|---|---|
| Starting debts | $3,000 + $1,000 | $3,000 + $1,000 |
| Monthly payment | $300 | $350 |
| Payoff order | Highest APR first | Smallest balance first |
Two things moved, so nothing here shows what the order contributed.
Read more than the final date
A useful result includes
- Months to payoff
- Interest
- Total repayments
- The assumptions behind them
If the budget cannot cover required minimums, the result should identify that shortfall before presenting a strategy.
Questions
- Can I combine everything into one average APR?
- That loses information about minimums and which balance receives extra money. Keep accounts separate when comparing repayment order.
- What if my APR changes?
- Recalculate with the new rate. A fixed-rate example does not predict variable rates.
- Are ongoing purchases included?
- Only when the calculation explicitly models them. A no-new-borrowing estimate assumes they are zero.
- What if I cannot cover the minimums?
- A different repayment order does not solve that shortfall. Contact your creditors to discuss available payment options. CFPB explains possible next steps.