Multi-Debt Repayment Calculator

Compare avalanche and snowball payoff strategies across multiple debts and extra monthly payments.

Debt strategy inputs

Compare avalanche and snowball payoff strategies for three debts.

Debt-free timeline

2 yr 7 mo

Total interest

$4,221

Monthly payoff budget

$1,070

First target

Debt 1

Compared with the other strategy, this setup changes interest by $853 and timeline by 1 months.

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What is the multi-debt repayment calculator?

This calculator prioritizes multiple debts and shows how extra monthly repayment can shorten payoff time. The Korean source frames the problem in the context of household debt exceeding KRW 1,900 trillion and compares the avalanche and snowball strategies.

Avalanche and snowball strategies

Debt Avalanche

  • Debt Avalanche pays minimums on every debt, then sends all extra cash to the highest interest-rate debt first.
  • It is mathematically optimal because it minimizes total interest.
  • After the highest-rate debt is paid off, its minimum payment and the extra payment roll into the next highest-rate debt.
  • The downside is psychological: the first visible payoff may take longer when the highest-rate loan has a large balance.

Debt Snowball

  • Debt Snowball pays the smallest balance first, regardless of rate, while maintaining minimums elsewhere.
  • It usually costs slightly more interest than avalanche, but the early win can improve adherence.
  • The best strategy is the one the borrower can actually maintain without new borrowing.

Cascade example and priority guide

Cascade effect

In the Korean example, debt A is KRW 5,000,000 at 17% with a KRW 150,000 minimum, and debt B is KRW 15,000,000 at 6% with a KRW 300,000 minimum. With KRW 200,000 of extra cash, the borrower pays A KRW 350,000 and B KRW 300,000. Once A is paid off, B receives KRW 650,000 per month.

Common priority order

  • Credit-card revolving balances are often 15% to 20% and should be treated as urgent.
  • Card loans and cash advances often run 10% to 15%.
  • Credit loans often run 4% to 8%, car loans 4% to 9%, student loans 1.7% to 2.2%, and mortgages 3% to 5%.
  • Keep at least three months of living expenses as an emergency fund before using every won for prepayment.
  • In 2026, the legal maximum interest rate is 20%. Government programs such as Sunshine Loan, New Hope Spore, debt adjustment, work-out, personal rehabilitation, or bankruptcy may be relevant; the source points users to 1397 for consultation.