Order your debts, apply a rolling extra payment, and see when they clear.
Time to debt-free
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Total interest paid
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Total repaid
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Your breakdown
Updates live as you type
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Amount (NGN)
Worked example
Take two debts: an N800,000 balance at 28% a year with an N30,000 minimum, and an N400,000 balance at 35% a year with an N20,000 minimum. Total debt is N1,200,000. You add N50,000 of extra payment, so the monthly budget is the two minimums plus the extra, which is N100,000 held constant every month. With the avalanche method the extra is aimed at the 35% debt first, because clearing the highest rate first costs the least interest. Once the smaller, costlier debt clears, its freed minimum rolls onto the remaining debt, which is why payoff accelerates near the end. At N100,000 a month both debts clear in about 15 months, roughly 1 year and 3 months, with total interest of about N236,146 and total repaid of about N1,436,146.
How it is calculated
Each month the calculator accrues interest on every surviving debt, then pays each debt its minimum, then cascades the remaining budget onto the priority debt. The avalanche method ranks debts by interest rate, highest first, which clears your debts for the least total interest. The snowball method ranks by balance, smallest first, which clears individual debts faster and can feel more motivating. The key mechanic is that the monthly budget, the sum of all the original minimums plus your extra payment, never shrinks until the final month. As each debt clears, its minimum is freed and rolls onto the next priority debt, so the payment aimed at your debts keeps growing. Increasing the extra payment shortens the schedule and cuts interest sharply, while a budget that fails to cover the monthly interest will never clear the debt at all.
Frequently asked questions
Is the snowball or avalanche method better?
The avalanche method pays the highest-interest debt first, which clears your debts for the least total interest. The snowball method pays the smallest balance first, which clears individual debts faster and can be more motivating. Both apply your minimum payments to every debt, then put any extra against the priority debt and roll it forward as each debt clears. This tool shows the payoff time and interest for whichever you choose.
How do Nigerian interest rates affect my payoff schedule?
Nigerian commercial bank lending rates are set above the Central Bank of Nigeria policy rate, which has been in the range of 24 to 27 percent in recent years. At those levels, interest accrues quickly and a significant portion of each minimum payment goes to servicing the charge rather than reducing the balance. Adding even a modest extra payment each month can cut months off the schedule and save tens of thousands of naira in interest over the life of the debt.
Does this calculator apply to Nigerian bank loans and credit facilities?
Yes. You can enter any naira-denominated debt, including personal loans from commercial banks, salary advance facilities, digital lender balances from providers like Carbon or Fairmoney, and buy-now-pay-later obligations. Enter the outstanding balance, the annual interest rate from your loan agreement, and the current minimum monthly payment for each facility. The calculator handles up to four debts at once.
What happens to my plan if the Central Bank of Nigeria changes rates?
Most Nigerian personal loans and overdraft facilities carry variable rates tied to the prime lending rate or a bank-specific benchmark. If the CBN raises rates, your effective interest rate can increase mid-term, which would extend your payoff timeline beyond what this tool projects. To stay conservative, enter a rate that is slightly above your current rate to model a potential rise. If your loan carries a fixed rate, the projection will remain accurate for the life of that facility.