Debt Payoff Calculator
Snowball (smallest first) or Avalanche (highest interest first) — pick a strategy and see your debt-free date.
Payoff Order
| # | Debt | Balance | Rate | Payoff Month |
|---|
Snowball vs Avalanche
Both methods send every spare dollar at one debt while making minimum payments on the rest. The difference is which debt you target first. Avalanche targets the highest interest rate — mathematically optimal because it saves the most interest. Snowball targets the smallest balance — psychologically more motivating because you get a quick win (debt eliminated) early.
For most people, the difference in total interest paid is modest — usually less than 10% over the full payoff period. If finishing debt-free is a willpower battle, Snowball's early wins often outperform Avalanche's slightly cheaper math. If you're the type who runs the numbers and stays disciplined, Avalanche wins.
The Power of the Extra Payment
Minimum payments are designed to keep you paying for years. An extra $100-200/month attacks principal directly and can cut payoff time in half. The calculator above shows exactly how much interest you save versus paying only minimums.
Once a Debt Is Paid Off
In both methods, when one debt disappears, you roll its entire payment (minimum + extra) into the next debt. This is the "snowball" effect — your monthly attack grows larger as you knock out smaller debts, accelerating the back end of the plan.
Frequently Asked Questions
Should I save or pay off debt first?
Standard advice: keep a small emergency fund ($1,000-$2,000) so you don't have to use credit for surprises, then attack high-interest debt aggressively. Once it's gone, build a larger emergency fund (3-6 months expenses) and start investing.
What about balance transfer cards?
If you qualify for 0% intro APR for 12-21 months, transferring high-rate balances can save thousands. Watch for transfer fees (3-5%), make sure you can pay it off before the promo ends (rate often jumps to 25%+), and don't run up new debt on the old card.