Debt Payoff Calculator
Compare debt avalanche vs debt snowball strategies. See exactly when you'll be debt-free and how much interest you'll save.
Enter your debts below. We'll show both avalanche (highest interest first) and snowball (lowest balance first) strategies.
Frequently Asked Questions
Pay minimums on all debts, then put all extra money toward the debt with the highest interest rate first. Once paid off, roll that payment to the next highest rate. This saves the most money in interest.
Pay minimums on all debts, then attack the smallest balance first regardless of interest rate. The psychological wins of paying off debts quickly keep you motivated. Popularized by Dave Ramsey.
Avalanche saves more money mathematically. Snowball provides more psychological motivation. If you struggle with motivation, snowball. If you're disciplined and want to maximize savings, use avalanche.
Every extra dollar reduces principal and saves interest. A general rule: first build a $1,000 emergency fund, then attack high-interest debt (above 7%) aggressively before investing more.
About this calculator
The Debt Payoff Calculator compares the two best-known ways to clear several debts: the avalanche method, which sends extra money to the highest-interest debt first, and the snowball method, which sends it to the smallest balance first. It also shows what happens if you pay only the minimums.
List each debt with its balance, interest rate and minimum payment, add the extra amount you can pay each month in total and pick your currency. The tool simulates the whole payoff month by month, rolling each cleared debt's payment into the next. You see how long it takes, the total interest in each case and the interest saved compared with paying minimums only.
How to use it
- Fill in Debt Name, Balance, APR and Min Payment for each debt. Use + Add Another Debt for more.
- Enter the Extra Monthly Payment you can add on top of all minimums.
- Choose a Currency.
- Press Calculate Payoff Plan.
- Compare payoff time and total interest for minimums only, avalanche and snowball.
Tips and common mistakes
- Avalanche saves the most interest mathematically. Snowball can keep you motivated by clearing debts sooner. Pick the one you will actually follow.
- Minimum payments on credit cards can keep you in debt for a decade or more.
- Do not add new debt while paying down old debt. Freeze or cut up the card if needed.
- Call your lender. Many will lower the rate or consolidate if you ask.
Frequently asked questions
What is the debt avalanche method?
Pay minimums on all debts and put all extra money toward the debt with the highest interest rate first. It minimises total interest.
What is the debt snowball method?
Pay minimums on all debts and put extra money toward the smallest balance first. It clears debts faster early on and can help motivation.
Which method is better?
Avalanche costs less. Snowball can be easier to stick with. If the two give similar results, choose the one you prefer.
Why is the minimums-only result so slow?
Minimum payments barely exceed the interest on high-rate debts, so the balance falls very slowly.
Does the calculator include new charges or fees?
No. It assumes no new borrowing and no fees.
Can I use it for any currency?
Yes, choose the symbol you want. The maths is the same.