Use this calculator to estimate how quickly you can pay off your student loans by applying the principles of the Debt Snowball or Debt Avalanche methods, often discussed by Dave Ramsey.
Student loan debt can feel overwhelming, but having a clear plan can make a significant difference. Dave Ramsey, a prominent financial author and radio host, advocates for aggressive debt payoff strategies. This calculator helps you visualize your progress using two popular methods: the Debt Snowball and the Debt Avalanche.
The Debt Snowball Method
The Debt Snowball method focuses on psychological wins. You list your debts from smallest balance to largest balance. You pay the minimum on all debts except the smallest one, on which you throw every extra dollar you can find. Once the smallest debt is paid off, you take all the money you were paying on that debt (minimum + extra) and add it to the minimum payment of the next smallest debt. This continues until all debts are paid off. The primary benefit is the motivation gained from quickly eliminating smaller debts.
The Debt Avalanche Method
The Debt Avalanche method is mathematically superior. You list your debts from highest interest rate to lowest interest rate. You pay the minimum on all debts except the one with the highest interest rate, on which you throw every extra dollar. Once the highest-interest debt is paid off, you take all the money you were paying on that debt (minimum + extra) and add it to the minimum payment of the next highest interest rate debt. This method saves you the most money in interest over time.
How the Calculator Works
This calculator simplifies the payoff process. It takes your total outstanding student loan debt, your current minimum total monthly payment, and any additional amount you can contribute each month. Based on your chosen payoff method (Snowball or Avalanche), it estimates how many months it will take to become debt-free.
Total Student Loan Debt: The sum of all outstanding student loan balances.
Minimum Total Monthly Payment: The combined minimum payments required for all your student loans.
Extra Monthly Payment: Any additional amount you can consistently allocate towards paying down your debt beyond the minimums. This is key to accelerating your payoff.
Payoff Method:
Debt Snowball: Prioritizes paying off debts with the smallest balances first for quick wins.
Debt Avalanche: Prioritizes paying off debts with the highest interest rates first to save on interest costs.
By inputting these figures, the calculator simulates your debt reduction journey. While this calculator provides an estimate based on your total debt and extra payment, it's important to note that individual loan details (like specific interest rates and balances for each loan) would provide a more precise breakdown. However, it serves as an excellent tool for motivation and planning, helping you stay on track with your financial goals.
function calculatePayoff() {
var totalLoanAmount = parseFloat(document.getElementById("totalLoanAmount").value);
var monthlyPayment = parseFloat(document.getElementById("monthlyPayment").value);
var extraPayment = parseFloat(document.getElementById("extraPayment").value);
var payoffMethod = document.getElementById("payoffMethod").value;
var resultDiv = document.getElementById("result");
var resultValueDiv = document.getElementById("result-value");
var resultMessageDiv = document.getElementById("result-message");
if (isNaN(totalLoanAmount) || totalLoanAmount <= 0 ||
isNaN(monthlyPayment) || monthlyPayment <= 0 ||
isNaN(extraPayment) || extraPayment 0) {
simulationMonths++;
var interestThisMonth = tempRemainingDebt * averageMonthlyInterestRate;
interestAccrued += interestThisMonth;
var principalPaid = totalMonthlyObligation – interestThisMonth;
if (principalPaid 500) { // Prevent infinite loops for very large debts/small payments
resultMessageDiv.innerHTML = "Payoff calculation exceeded reasonable limits. Please check your input values.";
resultValueDiv.innerHTML = "N/A";
resultDiv.style.display = "block";
return;
}
}
months = simulationMonths;
var years = Math.floor(months / 12);
var remainingMonths = months % 12;
var resultText = "";
if (years > 0) {
resultText += years + " year" + (years > 1 ? "s" : "");
if (remainingMonths > 0) {
resultText += ", " + remainingMonths + " month" + (remainingMonths > 1 ? "s" : "");
}
} else {
resultText += remainingMonths + " month" + (remainingMonths > 1 ? "s" : "");
}
resultValueDiv.innerHTML = resultText;
resultMessageDiv.innerHTML = "This estimate assumes an average annual interest rate of " + (averageAnnualInterestRate * 100) + "%. The Debt Snowball/Avalanche methods primarily focus on accelerating principal payment. ";
resultMessageDiv.innerHTML += "By consistently paying $" + totalMonthlyObligation.toFixed(2) + " per month, you'll be debt-free in approximately the time calculated.";
resultDiv.style.display = "block";
}