Debt Payoff Calculator
Compare avalanche and snowball methods to find the fastest debt payoff strategy.
Inputs
$
Results
Months to Debt-Free
26 months
Total Interest Paid
$1,470.04
Payoff Order
Credit CardMonth 17 · $669.63 interest
Car LoanMonth 26 · $800.41 interest
Formula
Avalanche: Pay minimums on all debts, apply extra to highest-rate debt first.\nSnowball: Pay minimums on all debts, apply extra to lowest-balance debt first.
Both methods pay off all debts; avalanche minimizes total interest while snowball provides motivational quick wins by eliminating small balances first.
Worked Example
Debts:
- Credit Card: $5,000 at 18%, $150 min
- Car Loan: $10,000 at 6%, $300 min
Extra payment: $200/month
Avalanche targets the credit card first (highest rate), then redirects all freed payments to the car loan.
When to Use This Calculator
Use this calculator when you have multiple debts and want to create a strategic payoff plan. Compare both methods to choose what works best for your financial and psychological needs.
Important Assumptions
- Minimum payments and interest rates remain constant.
- Extra payment is applied consistently every month.
- Freed-up minimum payments from paid-off debts are redirected.
Common Mistakes to Avoid
- Stopping extra payments after paying off one debt — redirect freed payments to the next debt.
- Not accounting for minimum payments that don't cover interest on high-rate debts.
Frequently Asked Questions
Which method saves more money?
The avalanche method (highest rate first) always saves more in total interest. The snowball method (lowest balance first) may keep motivation higher by providing quicker wins.
Should I use avalanche or snowball?
If minimizing interest cost is your priority, use avalanche. If you need psychological wins to stay motivated, snowball can be more effective in practice.
Related Calculators
Methodology: This calculator uses standard financial formulas documented above. All calculation engines are unit-tested for accuracy.View full methodology
Disclaimer: This calculator provides estimates for educational purposes only. Results do not constitute financial advice.Full disclaimer