Which debt to clear first
With more than one debt, the order you clear them in changes what the whole thing costs.
5 minutesYou'll need: Each balance, its rate, and its minimum paymentNothing you type leaves your browser
Start here: replace the example figures with yours, read the main result, then change one number at a time to see what matters most.
What you owe
$41,500 across 3 balancesYour debt payment is $2,000 a month — every minimum plus the extra — and it stays constant. That is what makes either order work.
Highest rate first
Highest rate first
Mathematically the cheaper of the two, always.
- Debt-free
- 1 yr 11 mo from now
- Interest paid
- $2,820
Smallest balance first
Costs a little more, but clears whole debts sooner.
- Debt-free
- 1 yr 11 mo from now
- Interest paid
- $2,948
Total balance falling over time on two orders. Highest rate first clears everything in 1 yr 11 mo with $2,820 of interest; smallest balance first takes 1 yr 11 mo with $2,948.
What changes the answer
The extra amount moves this far more than the order does. Every additional $100 a month lands on the target balance in full, and it compounds: clearing one debt sooner frees its minimum for the next.
Between the two orders, highest-rate-first is cheaper by definition — every extra dollar goes to the most expensive balance. Smallest-balance-first costs more on paper and clears whole debts sooner, and if those early wins are what keep you paying, they're worth real money too. The gap above is what that motivation costs.
These calculators are educational estimates based on the numbers and assumptions you enter. Real results vary, and projections are not guarantees. Nothing here is personalized investment, tax, or legal advice.
See the assumptions behind this estimate
What the calculator assumes
- The total monthly payment stays constant: every minimum, plus the extra amount.
- The extra starts with take-home income after listed living costs and every active debt minimum; entering a different amount here is a deliberate override.
- When a debt clears, its whole payment rolls onto the next target. That rollover is what makes either order work at all.
- Interest accrues monthly, at each debt's annual rate divided by twelve.
- Rates are treated as fixed for the whole payoff.
- No new borrowing happens along the way.
What it leaves out
- Promotional and variable rates, balance-transfer fees, late fees, and deferred interest are not modeled — any of them can change the order.
- Refinancing and consolidation aren't modeled either, and for a high-rate balance they often beat both orders here.
- Federal student loans have forgiveness and income-driven repayment paths that make paying them down fast the wrong move for some people. This calculator can't see any of that.
Save this set of numbers
Give these figures a name and you can come back to them, or set up a second version to compare against. One saved set covers every calculator here, and all of it stays in this browser.
Useful next steps
The model gives you an order. The real plan starts with verified balances and a method you can keep following; if minimums are already hard to cover, get reputable help early.
Public resources only. Networthy has no financial relationship with these sources.
- Consumer Financial Protection Bureau, opens in a new tabPut the payoff order on paperThe CFPB’s debt action plan sets highest-rate-first beside smallest-balance-first and turns either method into a worksheet.
- Consumer Financial Protection Bureau, opens in a new tabPull the record before you set the orderLearn how to request the free credit reports authorized by federal law and avoid look-alike sites that charge.
- Consumer Financial Protection Bureau, opens in a new tabKnow what reputable credit counseling looks likeIf the payments no longer fit, this explains how nonprofit counseling works, what it can cost, and which sales tactics are red flags.
An estimate is a starting point. Test the assumption doing the most work, then take the next question in order.
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