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
Total Monthly Payment
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 |
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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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