Useful next calculations
Rates and sources
Month-by-month illustration using only the balances, APRs, minimum payments and extra payment entered. It does not reproduce lender statement dates, daily interest, changing minimums, fees or promotional-rate expiry.
| Band or figure | Rate |
|---|---|
| Avalanche priority | highest APR first |
| Snowball priority | smallest balance first |
| Minimum payments | entered by you |
| Maximum projection | 50 years |
Source: MoneyHelper — reducing borrowing. Check the linked guidance and any live quote before acting.
When to use this calculator
- Before comparing personal loan or credit offers on the same amount and term.
- When you want to see total interest, not only the monthly payment.
- When you are choosing between a shorter term and a lower monthly debit.
- When you need a planning estimate before making a credit application.
A worked example
These are the example figures the calculator opens with.
| Input | Value |
|---|---|
| Total debt (£) | £13,000 |
| Approximate weighted APR (%) | 14.5% |
| Total monthly payment (£) | £435 |
For those figures the calculator returns:
- Approximate payoff time: 38.00 months
- Approximate interest: £3,226.69
- Approximate total paid: £16,226.69
- Status: Repayment model completes
Method & assumptions
This planner lets you enter up to ten credit cards or loans and keeps the same overall monthly payment budget as individual balances are cleared. The avalanche option sends spare money to the highest APR; the snowball option sends it to the smallest balance. Both continue the minimum payments entered for the other balances.
The month-by-month estimate adds one-twelfth of the entered APR before applying payments. Real lenders may calculate interest daily, change rates, apply fees or use minimum-payment formulas rather than fixed amounts. Promotional rates and early-settlement terms are not modelled.
If the entered budget does not clear the balances within 50 years, the tool reports that instead of inventing a payoff date. Anyone unable to maintain contractual payments should use free, impartial debt help rather than treating this illustration as advice to borrow or consolidate.
Common mistakes
- Judging an offer by the monthly payment alone and ignoring total interest.
- Using a representative APR as if it were a guaranteed personal rate.
- Forgetting arrangement fees or early-settlement terms.
- Comparing two loans that do not use the same amount and term.
What to do next
- Compare offers using the same amount and term, then check total repayable.
- Add fees and read early-settlement terms before treating the estimate as the full cost.
- Test a shorter term to see whether a higher payment is worth the interest saved.
- If several debts are involved, use a consolidation or payoff planner next.