Payment Allocation Calculator — Smart Debt & Bill Payment Distribution

Payment Allocation Calculator

Calculate optimal payment allocation across multiple debts or bills using different strategies (Avalanche, Snowball, Proportional). Minimize interest and pay off debts faster.

Step 1: Enter Your Debts & Payment

Your Debts

Debt Name Balance Interest Rate Min. Payment

How Payment Allocation Works

Payment allocation strategies help you decide how to distribute your available payment across multiple debts to minimize interest paid or pay off debts faster.

Step 2: Choose Allocation Strategy

Strategy Comparison

Avalanche saves the most interest. Snowball provides psychological wins. Proportional reduces all debts simultaneously.

Payment Allocation Results

Allocation Summary
Strategy Comparison
Debt Payoff Analysis

Total Monthly Payment

£1,000.00
Using: Avalanche Method
Total Debt Balance
£15,000.00
Average Interest Rate
12.5%
Months to Payoff
18
Total Interest Paid
£1,250.00

Payment Allocation Breakdown

Debt Name Balance Interest Rate Allocated Payment % of Total

Payment Strategy Comparison

Strategy Months to Payoff Total Interest Paid Interest Savings First Debt Cleared

Debt Payoff Timeline Analysis

Allocation Strategy Formula

Avalanche: Pay minimums on all debts, allocate remainder to highest interest debt.

Snowball: Pay minimums on all debts, allocate remainder to smallest balance debt.

Proportional: Allocate payment proportionally based on each debt’s balance.

Each strategy has different psychological and financial benefits. The Avalanche method mathematically minimizes interest paid, while Snowball provides faster psychological wins.

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