Free Calculator

Debt Payoff Calculator

See exactly when you'll be debt-free. Compare avalanche vs snowball methods. Built for Filipino households.

Avalanche Method

Pay off the debt with the highest interest rate first while making minimum payments on others. Mathematically optimal — saves you the most money on interest.

✓ Best for: high-interest credit cards, 5-6 loans

✓ Saves the most on total interest paid

✓ Faster overall debt elimination

Snowball Method

Pay off the smallest balance first while making minimum payments on others. Psychologically motivating — you see quick wins.

✓ Best for: staying motivated with multiple debts

✓ Quick wins build momentum

✓ Fewer debts to manage sooner

Common debts in the Philippines

Credit Cards

3-5%/month

BDO, BPI, Metrobank, Citibank

Personal Loans

1-3%/month

Bank personal loans, salary loans

5-6 Lending

20%/term

Informal lending, very high interest

SSS Loans

10%/year

Salary, calamity, pension loans

Pag-IBIG Loans

6.25-12%/year

Housing, multi-purpose loans

Online Lending

1-5%/day

GCredit, SPayLater, Billease

Frequently Asked Questions

What is the avalanche vs snowball debt payoff method?
The avalanche method: pay off the debt with the highest interest rate first while making minimum payments on others — mathematically optimal, saves the most on interest. The snowball method: pay off the smallest balance first — creates quick wins and psychological momentum. Choose based on your personality and financial discipline.
What is 5-6 lending in the Philippines and why is it dangerous?
5-6 lending (also called '5-6 interest' or 'bomb loan') is an informal lending scheme where you borrow ₱5,000 and pay back ₱6,000 — a 20% interest rate per term (often weekly or monthly). This is predatory lending. Annual interest rates can exceed 200%. Iponify helps you identify these dangerous loans and plan your payoff strategy.
Can I track my Pag-IBIG or SSS loan in Iponify?
Yes. Iponify's debt calculator supports all types of Filipino household debts including Pag-IBIG housing loans (6.25-12%/year), SSS salary loans, personal loans, credit cards, and informal debts. Track everything in one place and see exactly when you'll be debt-free.
What is a good debt-to-income ratio (DTI) for a Filipino household?
A healthy DTI is below 36% — meaning your total monthly debt payments should not exceed 36% of your gross monthly income. For Filipino households, the BSP recommends keeping housing expenses below 30% of income. Use Iponify's debt calculator to see your DTI and plan your payoff strategy.

Learn More About Debt Management

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SSS Loan vs Pag-IBIG Loan: Which is Better?

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Sources & References

The interest rates and financial information on this page are based on official sources:

Note: Interest rates are subject to change. Always verify current rates directly with the respective institutions.

Track all your debts in one place

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