Debt Payoff Priority Calculator

Get a recommended priority order for paying off debts, building emergency fund, and investing.

By Konstantin Iakovlev · Updated September 2026 · Source: CFPB — Consumer Tools

Debt 1
$
%
$/mo
Debt 2
$
%
$/mo
Debt 3
$
%
$/mo
%
Emergency Fund Status

Total Debt

$48,000.00

Total Min Payments

$830.00

/month

Est. Payoff Timeline

7 years

Recommended Priority Order

1. Make minimum payments on all debts ($830.00/mo)
2. Contribute enough to get the full employer 401(k) match
3. Pay off Credit Card (22.0% APR, $8,000.00)
4. Pay off Car Loan (6.0% APR, $15,000.00)
5. Build 3-6 month emergency fund
6. Pay off Student Loan (5.0% APR, $25,000.00)

Reasoning

Step 1Avoid late fees and credit score damage
Step 2An employer match is an instant 50-100% return, more than any of these debts costs
Step 3At 22.0%, this costs more than investing would likely earn
Step 4At 6.0%, this costs more than investing would likely earn
Step 5Full financial safety net before aggressive investing
Step 6Low rate: consider paying the minimum and investing the rest if returns exceed 5.0%

Debt Summary

Credit Card (22.0%)$8,000.00
Car Loan (6.0%)$15,000.00
Student Loan (5.0%)$25,000.00
Weighted Average Rate8.1%
Total Debt$48,000.00

Use the Debt Payoff Priority Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Deciding which debt to attack first is where a lot of money is won or lost. The order you pay things in can swing the total interest by thousands of dollars. This tool takes each debt's balance, rate and minimum payment, plus the state of your emergency fund, and returns a step-by-step priority list.

The order follows fixed rules. If you have no emergency fund, step one is a $1,000 starter fund. Next come the minimum payments on every debt, then contributing enough to get your full employer 401(k) match, since a 50-100% match is an instant return no debt rate matches. Every debt charging more than 5% is then listed for payoff, highest rate first (the avalanche order), followed, unless your emergency fund is already full, by building it to 3-6 months of expenses. Debts at 5% or less come last, with a note that investing the difference may beat paying them off early. The payoff timeline is a rough figure: it applies your total minimum payments to the combined balance at the balance-weighted average rate.

Two errors do the most damage. Pouring everything into debt while skipping an emergency fund leaves you exposed the moment an unexpected bill lands. Sidelining investments has the opposite cost, forfeiting years of compounding on long-horizon goals like retirement. Weigh tax implications and your own comfort with risk alongside whatever the calculator suggests.

Example: Sarah's Financial Prioritization

  1. 1 Input: Sarah has a $10,000 credit card at 24% with a $300 minimum payment and a $5,000 car loan at 6% with a $150 minimum. Her Emergency Fund Status is None.
  2. 2 Because she has no emergency fund, step 1 is a $1,000 starter fund. Step 2 is the minimum payments on both debts: $300 + $150 = $450 a month.
  3. 3 Step 3 is contributing enough to get her full employer 401(k) match. Both debts charge more than 5%, so steps 4 and 5 are paying off the credit card (24%) and then the car loan (6%), highest rate first, and step 6 is building a 3-6 month emergency fund. She has no debt at 5% or less, so there is no final low-rate step.
  4. 4 Payoff timeline: the balance-weighted rate is (10,000 × 24% + 5,000 × 6%) ÷ 15,000 = 18%. Paying only the $450 in minimums on $15,000 at 18% takes 47 months, shown rounded up as 4 years. Any money she puts toward step 4 beyond the minimums shortens that.

Source: CFPB — Consumer Tools · Last updated: September 2026

Frequently Asked Questions

What is the best order to pay off debts?
The financially optimal order: first, any debt in collections threatening legal action. Then high-interest credit cards, personal loans, car loans, student loans, and mortgage last. Always make minimum payments on everything while throwing extra money at the highest-rate debt (avalanche method).
Should I save or pay off debt first?
Build a $1,000 starter emergency fund first and make the minimum payment on every debt, then contribute enough to get any employer 401(k) match, an instant 50-100% return. Next pay down debt charging more than 5%, highest rate first, and build a full 3-6 month emergency fund. Debt at 5% or less can then be paid on schedule while you invest. This is the order the calculator uses.
Should I pay off my mortgage early or invest?
With mortgage rates of 6-7%, it is a close call. Mathematically, investing in a diversified portfolio has historically returned 8-10%, making investing slightly better. However, paying off the mortgage provides a guaranteed, risk-free return equal to your interest rate and enormous peace of mind.

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