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Debt Repayment Calculator: How Fast Can You Be Debt Free?
Quick answer: Keep paying every debt, add a fixed extra amount each month, and point it at one debt at a time. When that debt is gone, move its payment to the next one. Paying the highest rate first saves the most interest; paying the smallest balance first clears accounts sooner.
How long will it take to pay off your debts?
List your debts, add what extra you can pay each month, and choose an order.
You could be debt free in
3 years and 5 months
- $36,000 of debt, $6,500 of interest along the way
- Paying only the monthly payments: 5 years and 5 months, with $10,089 of interest
- Your plan saves about $3,589 of interest
- Order paid off: Credit card (1 year and 11 months), Line of credit (2 years and 10 months), Car loan (3 years and 5 months)
Estimate only. Interest is charged monthly at the rates you enter, and each payment stays the same until that debt is paid off; card and line of credit minimums usually fall as the balance falls, which makes payoff slower. When a debt is paid off, its payment moves to the next one.
How does the calculator work?
Each month, interest is added to every balance at the rate you enter and each debt gets its monthly payment. Your extra amount goes to the debt first in line. Once a debt is paid off, its payment joins the extra amount, so the payments roll forward and grow. The comparison line shows paying only each debt's own payment, with nothing rolled forward.
Why does paying off debt matter for a mortgage?
Lenders count every monthly debt payment in your total debt service ratio. A $400 car payment can lower the mortgage you qualify for by about $60,000 at today's stress test rate. Try your numbers in the GDS and TDS calculator, then see the purchase price with the BC affordability calculator.
What if you already own a home?
Homeowners can sometimes replace card and loan debt with a lower rate through a refinance or a home equity line of credit. If your credit has suffered, our guide to bad credit mortgages in BC explains the options, and our guide to debt consolidation in BC compares the costs with a worked example.
Frequently asked questions
Is the avalanche or the snowball method better?
The avalanche method (highest rate first) always costs the least interest. The snowball method (smallest balance first) clears accounts sooner, which some people find easier to stick with. The calculator shows both so you can compare the cost.
Why does paying only the minimum take so long?
On a credit card at around 20%, most of a small payment goes to interest. Card minimums also fall as the balance falls, so payoff slows down further. Even a modest fixed extra payment shortens the time a lot.
Should I pay off debt or save for a down payment first?
Often both, in the right order. High interest debt raises your TDS ratio and lowers what you can borrow, so clearing a card or a small loan can increase your approval amount by more than the same money added to your down payment.
Can I combine my debts into my mortgage?
If you own a home with enough equity, a refinance or a home equity line of credit can replace high interest debts with a lower rate. It spreads the debt over a longer time, so compare the total cost, not only the monthly payment.
Want a lender's view of your numbers? Book an appointment with Asim Ali, ranked #4 in the CMP Top 75 Mortgage Brokers in Canada for 2026, or call 604‑591‑3590.