Debt Payoff Calculator
Compare debt snowball vs avalanche strategies. See how extra payments can save you years of payments and thousands in interest.
Your Debts
Additional amount beyond minimum payments
Debt Snowball
Pay smallest balance first for quick wins and motivation.
Debt AvalancheBest
Pay highest interest first to minimize total interest paid.
Extra Payment Impact
Balance Over Time
Snowball vs Avalanche
Two popular strategies with different advantages.
Debt Snowball
Pay off smallest balance first, regardless of interest rate.
Debt Avalanche
Pay off highest interest rate first, regardless of balance.
How Extra Payments Work
Understanding the power of paying more than the minimum.
Pay Minimums on All
First, make minimum payments on every debt to stay current.
Target One Debt
Put all extra money toward your target debt (smallest or highest rate).
Roll Payments Forward
When a debt is paid off, add its payment to the next target.
Frequently Asked Questions
Common questions about debt payoff strategies.
What is the debt snowball method?
The debt snowball pays off debts from smallest balance to largest, regardless of interest rate. After paying minimums on all debts, extra money goes to the smallest. When paid off, that payment "snowballs" to the next smallest. Quick wins provide motivation to continue.
What is the debt avalanche method?
The debt avalanche pays off debts from highest interest rate to lowest. Extra money goes to the highest-rate debt first. This mathematically minimizes total interest paid, but may take longer to see progress on individual debts.
Which strategy is better?
Avalanche saves more money on interest, while snowball provides faster wins. Research shows people using snowball are more likely to complete their payoff plan due to motivation from early victories. Choose based on your personality: disciplined savers may prefer avalanche; those needing motivation may prefer snowball.
How much extra should I pay toward debt?
Any extra payment helps. Even $50-100 extra per month can save years and thousands in interest. Start with what you can afford consistently. Many people use raises, tax refunds, or bonuses for extra payments. Use this calculator to see how different amounts affect your timeline.
Should I pay off debt or save money?
Generally: (1) Build a small emergency fund first ($1,000-2,000), (2) Pay off high-interest debt (over 7-8%), (3) Then balance saving and lower-interest debt. High-interest debt usually outweighs investment returns, so eliminating it is often the best "investment" you can make.
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