Debt Repayment Calculator 2026/27
A £3,500 credit card at 22.9% APR and an £8,000 personal loan at 9.9% with £100 extra monthly using the avalanche method can be paid off in around 40 months. This is significantly faster and cheaper in interest than minimum payments alone. Enter your debts below to find your exact debt-free date.
Figures verified against Bank of England base rate on .
Written by James HartleyCIMA
Calculator
Amount over and above all minimum payments combined
Debt-Free In
3y 9m
45 monthly payments · Avalanche method
Total Interest Paid
£2,759
Monthly Payment
£350
You're using the avalanche method (highest interest first). This minimises total interest paid. Stay disciplined , the psychological wins come later.
These insights are generated based on your inputs and general UK financial guidelines. They do not constitute personal financial advice. Always consult a CIMA-qualified accountant or FCA-regulated adviser before making financial decisions.
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How Debt Repayment Calculator 2026/27 Works
Paying only the minimum on a credit card can keep you in debt for decades. Our guide to credit card minimum payments shows the true cost and why extra payments matter so much.
Avalanche method (mathematically optimal)
Pay minimum payments on all debts, then throw every extra pound at the highest-interest debt first. Once that's cleared, the freed-up payment rolls to the next highest-rate debt. This minimises total interest paid over the repayment period.
Snowball method (psychologically effective)
Pay minimum on all debts, then target the smallest balance first, regardless of interest rate. The quicker wins (fully paid off debts) build motivation. Research shows many people are more successful with this method because early wins keep them engaged.
The power of extra payments
Even £50-£100 extra per month dramatically shortens repayment time. As each debt is cleared, that freed-up payment rolls to the next, creating an accelerating "debt snowball" or "debt avalanche" that gains speed over time.
Frequently Asked Questions
The avalanche method pays off the highest-interest debt first while maintaining minimum payments on others. This minimises total interest paid and is mathematically optimal.
The snowball method pays off the smallest balance first. While it costs more in interest, it provides quick psychological wins that help many people stay motivated.
If your debt APR is higher than savings rates (typically anything above 4 to 5%), prioritise paying off debt. Always maintain a small emergency buffer (£1,000 to £2,000) even while repaying debt.
Usually 1 to 3% of the balance or a flat £25 (whichever is greater) for credit cards. Check your statement. Paying only the minimum dramatically extends repayment and total interest costs.
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.