Educational tool
01
02
Debt 1
03
Total debt
Everything still outstanding based on the debts entered.$0
Total minimum payment
The minimum you need to pay each month to avoid falling behind.$0
Weighted annual cost
A reference for the average cost of your debt. If it is high, investing has to compete with expensive debt.Complete data
Debt / liquid net worth
Compares what is owed with the available liquid base. It helps show whether debt is heavy relative to the cushion.Complete data
Minimums / net income
How much of monthly income goes only to minimum payments.Complete data
Debt load pending calculation.
Plan payment / net income
Complete data
Fixed expenses + minimums / income
How much of income goes to recurring expenses and debt minimums. If you already counted minimums inside expenses, read it with caution.Complete data
Estimated monthly margin
The room left after expenses and debt. If it is negative, the monthly plan is tight.$0
Emergency fund months
How long you could cover basic expenses without income.Complete data
Cash before debt
$0
Gap versus minimums
$0
Extra above minimums
$0
Margin after debt plan
$0
This ratio assumes fixed expenses do not already include debt minimums. If you included them there, read this figure with caution.
Cash-flow sustainability
Insufficient income data
Add income, expenses, and minimum payments to evaluate monthly sustainability.
04
For an investment to compete with this debt, it would need to exceed this reference with enough margin, after costs, taxes and risk.
Equity investments can lose part or all of their capital. And many fixed-income alternatives often yield less than the effective cost of expensive debt. So the comparison is not only what return I expect, but what risk I take to beat an obligation with a known cost.
Add at least one debt with balance to see comparable references.
Simulation method
This method is used to estimate savings from additional payments and extra principal payments.
05
This saving does not come from magic. It comes from reducing the time during which debt continues charging interest.
Current monthly payment
$0
Simulation method
Avalanche
Scenario payment
$0
Estimated savings
Complete data
Months earlier
Complete data
06
Extra principal payments usually have more impact when they reduce principal on expensive debt. The difference shows up in future interest that stops accruing.
Examples: severance, annual bonus, vacation payout, bonus, asset sale, tax refund, or other extraordinary income.
Add an extra principal payment to estimate its impact.
Simulation method
Avalanche
Additional savings from extra payments
$0
Months earlier
0 months
Estimated impact of extra payments
$0
07
No extra above minimums
Your monthly payment exactly covers the minimums. In this case, avalanche and snowball can look the same because there is not yet extra money to prioritize one debt over another.
To see a difference between methods, increase the monthly payment or add an extra principal payment.
Prioritizes the debt with the highest adjusted annual cost first.
Estimated months
0 months
Principal paid
$0
Estimated interest
$0
Estimated costs/fees
$0
Estimated interest and costs
$0
Estimated financial total
$0
First prioritized debt
Complete data
Method priority
Complete data
Difference between methods
With the current inputs, both methods produce the same result because there is no extra above minimum payments or because the practical payoff order does not change.
In this scenario, the simulation helps compare cost and time without turning the result into personalized advice.
08
Monthly pressure
Insufficient income data
Fixed expenses + minimums / income
Insufficient income data
Emergency fund months
Insufficient income data
An emergency fund helps prevent a surprise from forcing you to borrow more or sell investments at a bad time. As an educational reference, 6 months is often a prudent base. If your income is variable, you support family, or you run your own business, moving closer to 12 months gives more margin.
A debt can look reasonable because of rate or purpose, but become fragile if it consumes too much monthly cash flow, reduces liquidity, or blocks a margin of safety.
The point is not to label debt as good or bad by name. The point is to look at rate, cash flow, liquidity and fragility.
This tool is educational. It does not replace financial, legal, tax, or insolvency advice.