Debt Payoff Calculator Canada

Estimate a Canadian debt payoff timeline, total interest, and debt-free date from balance, rate, payment amount, and extra payments.

Your details

Debt 1

Debt 2

Debt 3

Strategy

Cheapest strategy

Avalanche saves $361

Both plans clear the same debts on the same budget. Paying highest-rate first costs $361 less in interest.

Interest paid over time

Both plans use the same $825 a month. The gap between the lines is what the order of payments costs you.

0122432Avalanche debt-free$3,245$0Months from today
AvalancheSnowball
View chart data
Months from todayAvalancheSnowball
0$0$0
1$207$207
2$407$410
3$600$607
4$785$799
5$962$986
6$1,132$1,167
7$1,293$1,343
8$1,447$1,514
9$1,593$1,680
10$1,730$1,840
11$1,859$1,992
12$1,979$2,135
13$2,091$2,269
14$2,195$2,394
15$2,289$2,511
16$2,374$2,617
17$2,450$2,715
18$2,517$2,802
19$2,575$2,880
20$2,625$2,948
21$2,670$3,006
22$2,710$3,054
23$2,746$3,092
24$2,777$3,125
25$2,804$3,154
26$2,828$3,179
27$2,847$3,200
28$2,862$3,217
29$2,874$3,230
30$2,881$3,239
31$2,884$3,244
32$2,884$3,245

Avalanche pays in this order

Highest interest rate first. This is the order that costs least.

Credit card → Line of credit → Car loan

Snowball pays in this order

Smallest balance first. Costs more, but clears whole accounts sooner.

Line of credit → Credit card → Car loan

Your debts

Total balance$22,500
Minimum paymentsAcross 3 debts$575
Extra each month$250
Total going to debtMinimums plus extra, rolled forward as each debt clears$825

Avalanche · highest rate first

Debt-free in2 yr 7 mo
Debt-free byMarch 2029
Interest you pay$2,884

Snowball · smallest balance first

Debt-free in2 yr 8 mo
Debt-free byApril 2029
Interest you pay$3,245

What avalanche wins you

Interest saved$361
Time saved1 month sooner

How debt-payoff plans work

This debt-payoff plan compares two proven strategies: the debt avalanche and debt snowball methods. The goal is to show you the fastest and most cost-effective path to becoming debt-free across your accounts. By applying the exact same monthly budget to both approaches, the tool illustrates how strategic payment ordering changes your overall timeline and total interest costs.

The debt avalanche method channels any extra money toward the balance with the highest interest rate, minimizing the amount you pay in interest over time. The debt snowball method directs extra funds toward your smallest balance first, giving you quick psychological wins as individual debts are wiped out. Both strategies maintain minimum payments on all accounts, but shifting where your extra cash goes alters the sequence and overall cost of your payoff journey.

Understanding your results

With $825 a month going toward $22,500 of debt, the avalanche method clears your accounts in 2 yr 7 mo (March 2029) and costs $2,884 in interest, while the snowball method takes 2 yr 8 mo and costs $3,245. Use the avalanche method here: on the same monthly budget it saves you $361 and finishes 1 month sooner.

Because both methods operate on the same total budget, they clear your debt in similar timeframes, and the avalanche saves more money by targeting expensive, high-rate debt first. The snowball ordering is worth its extra $361 only if closing an account quickly is what keeps you paying.

If increasing your monthly payment barely changes your target date, review your interest rates and fees, as high rates can eat into your progress. And if a payment ever stops covering the interest your balances accrue, freeze new charges on those accounts and contact your lender to discuss your options before relying on the timeline.

Formula or decision method

Monthly payoff decision method

The model adds balance × annual percentage rate ÷ 12 as monthly interest, pays both minimums, then sends the remaining budget to the target. Avalanche targets the highest rate; snowball targets the smallest balance. When a debt clears, its payment rolls to the next account. If the total payment cannot cover monthly interest, the model reports no payoff path.

Data provenance

Copy the current balance, annual rate, minimum payment, and promotional expiry date from each lender's latest statement. The calculator uses only those user-entered facts and does not substitute a Canadian average interest rate. Recheck the statement when a variable or promotional rate changes.

Sensitivity test

Same two balances and rates; only the combined monthly payment changes. Avalanche and snowball share the same order for this example.
InputCalculated result
$600 combined payment3 yr 7 mo; about $5,529 interest
$700 combined payment2 yr 11 mo; about $3,984 interest
$800 combined payment2 yr 5 mo; about $3,166 interest

Frequently asked questions

Why does it say payment too low?

The monthly payment may not cover the interest being added.

Does this include fees?

No. Add fees to the debt amount if you want them included.

What if I have several credit cards?

Enter each balance, rate, and minimum separately. Avalanche targets the highest rate; snowball targets the smallest balance.

What if I can only add $25 extra?

Still test it. Small extra payments can shorten payoff time, especially when they go to the highest-rate balance.

Credit card debt explained

High-interest debt can grow quickly because interest is charged repeatedly on remaining balances.

Avalanche vs snowball methods

Avalanche pays highest-rate debts first. Snowball pays smallest balances first for motivation.

How interest compounds

Interest adds to the balance when payments do not fully cover charges and principal reduction.

Disclaimer

Debt payoff timing depends on interest rates, fees, payment dates, balance changes, and whether you keep using the account. Use this estimate to choose a repayment order, then confirm amounts with your lender statements.

See also

Practical pathways

Continue this Canadian planning journey

Page details

Author: Thomas Tremblay

Updated: August 6, 2026

Cite: Canooq.ca, Debt Payoff Calculator

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