Debt Payoff Planner

Debt is one of the biggest sources of financial stress for healthcare workers, and it often comes in layers: credit cards from training, a car loan, private student loans. A clear plan with an end date makes a real difference — both to your finances and to how you feel about them. This calculator builds that plan.

What this calculator does

Enter up to four debts with their balances, interest rates and minimum payments, plus any extra you can pay each month. Choose a method:

• Avalanche: extra money goes to the highest interest rate first.
• Snowball: extra money goes to the smallest balance first.

The calculator shows when you'll be debt-free, total interest, the interest you'd pay making only minimum payments, the interest you save, and the order your debts get paid off. The chart compares minimums only, your method and the other method.

The formula in plain English

Each month:

1. Every debt is charged interest: balance × (rate ÷ 12).
2. Every debt gets at least its minimum payment.
3. Whatever is left of your monthly budget — your extra amount plus the minimums of debts already paid off — goes to the target debt (highest rate or smallest balance).
4. When a debt reaches zero, its payment rolls to the next target. That's the "snowball" or "avalanche" effect.

Your total monthly budget stays the same the whole time, which is why payoff speeds up as debts disappear.

A worked example

Ben, a physical therapist, has:

• a credit card: $6,500 at 24.9%, minimum $160,
• a car loan: $18,000 at 7.5%, minimum $360,
• a private student loan: $35,000 at 6.8%, minimum $400,

and can add $400 a month.

• Using avalanche, Ben is debt-free in about 4½ years.
• He pays about $10,600 in interest.
• Paying only minimums, he'd pay about $22,300 — so the plan saves about $11,700.
• The order is credit card, then car, then student loan.

Here, the card has both the highest rate and the smallest balance, so avalanche and snowball give the same result. When they differ, the calculator shows by how much.

Why it matters at each career stage

If you're: Student

Try to avoid credit card balances during school; at 20% or more, they grow fast. If you have some, put them first in your plan.

If you're: Resident / fellow

Focus on high-interest debt like credit cards. Keep federal loans on an income-driven plan, especially if PSLF is possible. Even an extra $100 a month on a card makes a meaningful difference.

If you're: Employed

Your first years after training are the best time to wipe out consumer debt. Put a big share of your raise toward it and you can often be clear within a year or two.

If you're: Practice owner

Separate personal and business debts. Practice loans may be tax-deductible and are part of running the business; personal high-interest debt should go first.

Staying on track

Automate minimums so you never miss a payment and pay a late fee.

Make the extra payment right after payday. Treat it like a bill.

Celebrate payoffs. Each closed debt is real progress.

Don't add new debt. Use your emergency fund for surprises instead of a card. If you don't have one yet, a starter fund of one month's expenses should come first.

Revisit after raises. Add part of every raise to your extra payment.

When avalanche and snowball differ

The two methods give different results when your smallest debt isn't your highest-rate debt. Say you have a $2,000 medical bill at 0% and a $10,000 card at 22%. Snowball pays the medical bill first for a quick win; avalanche goes after the card and saves more interest. Try both in the calculator. If avalanche saves only a few hundred dollars, the motivation from snowball may be worth it.

Build your cushion with the emergency fund calculator. For student loans specifically, see the student loan payoff calculator and PSLF calculator.