🎯 Debt Payoff Calculator
Enter all your debts below, set your extra monthly payment, and see exactly when you'll be debt-free — plus how much interest you save with avalanche vs snowball strategy.
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Avalanche vs Snowball: Which Should You Choose?
| Factor | Avalanche | Snowball |
|---|---|---|
| Prioritizes | Highest interest rate first | Smallest balance first |
| Saves money? | ✅ Yes — maximum interest savings | ❌ Usually pays more interest |
| Motivation | Slower early wins | ✅ Quick wins build momentum |
| Payoff time | Usually faster or equal | Usually same or slightly slower |
| Best for | Disciplined, analytical people | People who need motivation |
The Debt Avalanche Method
Pay minimum payments on all debts, then throw every extra dollar at the debt with the highest interest rate. Once that's paid off, roll that payment into the next highest-rate debt. This method minimizes total interest paid and is mathematically optimal.
The Debt Snowball Method
Pay minimum payments on all debts, then attack the smallest balance first regardless of interest rate. Each paid-off account gives a psychological win and frees up its minimum payment to apply to the next debt. Research shows this method leads to higher completion rates for people who struggle with motivation.
The Power of Extra Payments
Every extra dollar above the minimum goes entirely to principal — reducing future interest charges.
An extra $200/month on a $20,000 debt at 18% APR saves ~$8,400 in interest and cuts payoff time by 4+ years.
An extra $200/month on a $20,000 debt at 18% APR saves ~$8,400 in interest and cuts payoff time by 4+ years.
Should I pay off debt or invest? +
If your debt interest rate is higher than your expected investment return, pay off debt first. High-interest credit card debt at 20%+ APR almost always beats investing. For low-interest debt (under 5–6%), investing in a diversified index fund that historically returns 7–10% may make more sense. Always capture any employer 401(k) match first — that's a guaranteed 50–100% return.
What is debt consolidation and does it help? +
Debt consolidation combines multiple debts into one loan, ideally at a lower interest rate. Options include balance transfer credit cards (0% intro APR for 12–21 months), personal consolidation loans, and home equity loans. It can save significant interest if you qualify for a lower rate — but it only works if you stop accumulating new debt. Use our calculator to see the impact of a lower rate on your payoff timeline.