Last updated: 2026 assumptions reviewed. Assumptions & sources
Debt

Debt Repayment Calculator

Your debt repayment plan in one screen: the debt-free date, and what the snowball and the avalanche each cost you in interest. Add a lump sum from a tax refund and watch the date move.

What this works out
Your balances and rates→Snowball or avalanche→Debt-free date→Interest saved
Same monthly payment, two different targets. The calculator shows what each order costs you in time and in interest.

Your Debts

Pick the closest situation, then edit everything below to match your real numbers.

Pre-filled with typical Canadian examples. Replace with your real balances and rates.

Type / Details Balance ($) APR (%) Min. Payment ($/mo) Remove

Total: $0  |  Monthly minimums: $0/mo

* Highlighted fields are estimated. Always replace with figures from your actual statement. Estimates based on Canadian averages: credit card ~20.99% / 2% min; car loan ~7.99% / 2% min; personal loan ~9.99% / 1.8% min; line of credit ~8.45% / interest-only min; mortgage ~4.84% / 0.4% min. Student loans start at 0%, because the federal portion of Canada Student Loans has been interest-free since April 1, 2023. Provincial portions still charge interest in several provinces (Ontario charges prime plus 1% on its share), so put the rate from your statement in the APR column.

Extra Payments

$ /mo
$0$500$1,000$1,500$2,000

Snowball vs Avalanche: Which Is Right for You?

The Avalanche

Target the debt with the highest interest rate first. Mathematically optimal: you pay the least total interest and get out of debt fastest.

Best for: people who are motivated by math and can stay disciplined even when progress feels slow on a large balance.

The Snowball

Target the smallest balance first. You'll pay more interest overall, but eliminating individual debts quickly builds real momentum.

Best for: anyone who has started and stopped debt payoff before, or who needs an early win to stay the course.

Pastoral note: The best method is the one you'll actually stick with. A plan you walk away from in month three leaves the balance exactly where it was. So pick the column you can see yourself finishing, and if the interest difference above is large, take the avalanche and hold the line.

How the rollover works

This calculator assumes you pay all minimum payments first, then put every extra dollar toward one target debt. When that target is paid off, its freed minimum automatically becomes part of your extra on the next one. That is why momentum builds: your payments genuinely snowball over time.

Why lump sums matter more than you think

A lump sum applied early in your payoff reduces the principal immediately, so every subsequent month accrues less interest. The earlier in the process you apply it, the more powerful the effect. CRA's 2026 filing-season statistics put the average refund at about $2,400. Sitting on a 19.99% credit card, that balance costs you roughly $480 a year in interest alone.

The calculator applies your lump sum to all three scenarios, including the minimums-only column. That keeps the interest-saved figure honest. What it measures is the repayment order you choose, on its own.

Where to go from the numbers

Choosing the order is the quick part. Freeing up the money to put behind it is the work, and that is what the step-by-step guide to getting out of debt in Canada walks through month by month. If you are weighing a balance against a TFSA or RRSP contribution, paying off debt or investing works that threshold out properly. And if the question underneath all of it is whether you should keep giving while you carry a balance, tithing while paying off debt takes that one on directly.

Frequently Asked Questions

Which is better, the debt snowball or the debt avalanche?

The avalanche pays less interest and usually finishes sooner, because it kills the highest rate first. The snowball clears whole debts earlier, and for a man who has started and stopped before, that first zero balance is what keeps him going. The calculator runs both so you can see what the momentum costs you. If the gap is a few hundred dollars, take the one you will finish.

What counts as a minimum payment in Canada?

On most Canadian credit cards the minimum is 2% to 3% of the balance or $10, whichever is higher, so it shrinks every month as the balance falls. Quebec runs its own rule: since August 1, 2025 every Quebec card statement must require at least 5% of the balance. This calculator holds your minimums fixed, which is the optimistic end of the range. On a $6,500 balance at 20.99%, a fixed $130 a month clears in 10 years. The same balance on a 2% minimum starts at that same $130 and is still not clear after 50 years.

What if my minimum payment does not cover the interest?

Then the balance grows every month and the debt never clears. A $6,500 balance at 20.99% charges about $114 a month in interest, so a $50 payment leaves you $64 deeper in by the next statement. When the calculator spots this it says so instead of printing a payoff date. The fix is to get the payment above the monthly interest, whether that comes from raising the payment or from moving the balance to a lower rate.

Should I pay off debt or invest in my TFSA or RRSP?

Compare the rate on the debt against the return you can realistically expect from investing. Above about 6%, clear the debt first: a 19.99% card beats any market return you can count on. Below 6% the call is closer, and an RRSP deduction can tip it. Paying down a 19.99% balance returns a guaranteed 19.99%, while a market return stays a guess until the decade is over. Your own peace of mind belongs in the decision alongside the numbers.

What about consolidation loans or balance transfers?

Both work when they lower your rate without stretching the timeline and without new spending on the card you just cleared. A transfer to a 0% promotional card shows up dramatically here: set the APR to 0 and watch the payoff date move. Read the promotional term and the transfer fee first, because a 3% fee on $10,000 is $300 before you save a dollar.

Should I keep tithing while paying off debt?

Yes. Giving is worship, an act of trust in the God who provides, and it belongs in your month whatever the balance says. Squeezing it to zero to clear a card a few months sooner tends to cost you more in the heart than it gains on the statement. The article on tithing while paying off debt works through the harder cases, including the months when the numbers genuinely do not fit.