How does the debt payoff calculator work?

The debt payoff calculator compares snowball and avalanche methods. Simply enter your debts with balances, APRs, and minimum payments, then choose your strategy to see month-by-month payoff timelines and total interest saved.

Is the debt payoff calculator free to use?

Yes, all our financial calculators are completely free to use. No registration or account creation is required.

Do you store my financial information?

No, we never store your personal or financial information. All calculations run in your browser and are not sent to our servers.

Can I use this calculator on mobile devices?

Yes, our calculators are fully responsive and work perfectly on all devices including smartphones and tablets.

How accurate are the calculations?

Our calculators use industry-standard formulas and provide highly accurate results. However, they are for educational purposes and should not replace professional financial advice.

Debt Payoff Calculator

Choose between snowball and avalanche debt payoff methods. Optimize your debt repayment strategy and see how much you can save on interest.

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What this means

Enter your details above to see the results and understand what they mean for your financial planning.

Related Calculators

Try the Debt Payoff Calculator

Use this interactive calculator to build a month-by-month debt payoff plan and compare snowball vs avalanche strategies.

Example Calculation

Scenario: Two debts with $100 extra monthly payment

Credit Card A: $1,500 balance at 19.99% APR
Personal Loan B: $5,000 balance at 7.0% APR
Extra Payment: $100/month
Snowball Result: Pay off Card A first, then roll payments to Loan B
Avalanche Result: Pay extra toward Card A (higher APR) for maximum savings

See which strategy works best for your situation and motivation style.

Debt Payoff Strategies: Snowball vs. Avalanche

The Snowball Method

The snowball method focuses on paying off debts with the smallest balances first, regardless of interest rates. This approach provides psychological wins that can keep you motivated.

How It Works:

List all debts from smallest to largest balance
Pay minimum payments on all debts
Put extra money toward the smallest debt
Once paid off, roll that payment to the next smallest debt

Benefits:

Quick wins provide motivation
Simpler to track progress
Reduces the number of creditors faster
Builds momentum and confidence

The Avalanche Method

The avalanche method prioritizes paying off debts with the highest interest rates first, which mathematically saves you the most money in interest payments.

How It Works:

List all debts from highest to lowest APR
Pay minimum payments on all debts
Put extra money toward the highest-interest debt
Once paid off, roll that payment to the next highest-rate debt

Benefits:

Saves the most money on interest
Faster overall debt elimination
More mathematically efficient
Better for long-term financial health

Which Method Should You Choose?

Choose Snowball If:

You need motivation to stay on track
You have many small debts that feel overwhelming
You're new to debt payoff and want early wins
Your debts have similar interest rates

Choose Avalanche If:

You're highly motivated and disciplined
You have debts with significantly different interest rates
Saving money is your top priority
You're comfortable with delayed gratification

Real-World Example

Let's say you have three debts:

Credit Card A: $2,000 at 24.99% APR
Personal Loan: $8,000 at 12% APR
Credit Card B: $1,500 at 18.99% APR

Snowball Method Order:

Credit Card B ($1,500) - Smallest balance
Credit Card A ($2,000) - Second smallest
Personal Loan ($8,000) - Largest balance

Avalanche Method Order:

Credit Card A ($2,000) - Highest APR at 24.99%
Credit Card B ($1,500) - Second highest at 18.99%
Personal Loan ($8,000) - Lowest APR at 12%

Maximizing Your Debt Payoff

Extra Payments:

Even small extra payments can significantly reduce your payoff time. A $100 extra monthly payment on a $5,000 credit card at 18% APR can save you 2-3 years of payments.

Debt Consolidation:

Consider consolidating high-interest debts into a lower-rate loan if you can qualify. This can reduce your overall interest burden and simplify payments.

Balance Transfers:

Transfer high-interest credit card balances to cards with 0% introductory rates. Just be sure to pay off the balance before the promotional period ends.

Common Pitfalls to Avoid

Taking on new debt: Focus on paying off existing debt before adding more
Missing payments: Late payments can damage your credit and add fees
Ignoring emergency savings: Build a small emergency fund to avoid new debt
Giving up too easily: Debt payoff takes time - stay consistent
Not tracking progress: Monitor your debt reduction to stay motivated

When to Use This Calculator

Comparing different debt payoff strategies
Planning your debt elimination timeline
Understanding the impact of extra payments
Motivating yourself with visual progress tracking
Teaching financial literacy about debt management

Debt Payoff Calculator

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What this means

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Try the Debt Payoff Calculator

Example Calculation

Debt Payoff Strategies: Snowball vs. Avalanche

The Snowball Method

How It Works:

Benefits:

The Avalanche Method

How It Works:

Benefits:

Which Method Should You Choose?

Choose Snowball If:

Choose Avalanche If:

Real-World Example

Snowball Method Order:

Avalanche Method Order:

Maximizing Your Debt Payoff

Extra Payments:

Debt Consolidation:

Balance Transfers:

Common Pitfalls to Avoid

When to Use This Calculator