Debt Payoff Calculator Canada (2026): Compare Your Repayment Paths

This tool compares two repayment orders using the numbers you enter. It is a planning illustration—not a promise of a debt-free date, a recommendation that a loan will be approved, or a determination that a debt-relief process is available.

What the calculator compares

The avalanche order directs available extra payment to the debt with the highest annual interest rate first. The snowball order directs it to the smallest balance first. Both methods keep the modeled minimum payments on open debts and move freed payment capacity to the next debt.

The result shows a modeled payoff month, total modeled interest, total modeled payments, and the difference between the two orders. It does not know whether a creditor compounds interest daily, changes a rate, applies fees, accepts a payment late, or reports an account in a particular way.

How to use it safely

1. Enter each debt separately, including the current balance, annual interest rate, and required monthly payment.
2. Enter only the extra amount you can sustain after essential expenses and required payments.
3. Read the assumptions and compare the result with current statements.
4. If the inputs are uncertain, use a range rather than treating one result as a commitment.

The tool is most useful for comparing orders within a self-directed repayment plan. It does not calculate a consumer proposal, bankruptcy, debt-management-plan eligibility, settlement offer, or creditor approval.

When the result is not enough

If required payments are already unaffordable, a court document or wage deduction has arrived, CRA is collecting, or the balance grows despite payments, stop and identify the mechanism before choosing a strategy. Use the debt collection notice triage workflow for a notice or active enforcement event.

For budgeting and debt-help options, see the Financial Consumer Agency of Canada’s debt guidance. A credit counsellor may discuss an informal debt management plan; creditors do not have to accept every plan, and the terms and costs must be confirmed with the agency. A Licensed Insolvency Trustee can explain formal options, but this calculator cannot predict proposal terms or approval.

Important limits

• The output is not legal, tax, credit-reporting, or financial advice.
• It does not include secured debts, future borrowing, penalty fees, payment deferrals, promotional rates, or changes to income and expenses unless you model them yourself.
• “Interest saved” means the difference between these two simulations, not a guaranteed saving against your actual statements.
• A long or unavailable modeled payoff does not prove that a specific debt-relief option is appropriate. It means the entered repayment assumptions need review.

Use the result to prepare a budget conversation, creditor call, or qualified review. Keep statements and agreements; do not send account numbers or notice images through this site.