Debt Payoff Calculator

How to use the Debt Payoff Calculator

1. Add each debt by entering its name, current balance, interest rate, and minimum monthly payment.
2. Set any extra monthly amount you can put toward debt repayment beyond the minimums.
3. Review the avalanche and snowball results to compare total interest paid and time to payoff.
4. Choose the strategy that fits your priorities: saving the most money or building quick wins.

Why the 'wrong' strategy mathematically can still be the right one for you

Avalanche is mathematically optimal. It will almost always save more total interest than snowball, given the same extra payment amount. But debt payoff isn't purely a math problem; behavioral research and personal finance guidance widely note that snowball's early wins (fully clearing a small debt fast) can meaningfully improve follow-through for people who struggle to stay motivated on a years-long payoff plan. If you've tried and abandoned a debt payoff plan before, the strategy that you'll actually stick with is often worth more in practice than the strategy that's optimal on paper.

Frequently asked questions

Which strategy saves more money overall?

Avalanche (highest interest rate first) minimizes total interest paid in nearly every case, since it targets the debt costing you the most per dollar owed as quickly as possible.

Which strategy gets me debt-free faster?

It depends on your specific debts. Snowball often clears your first account faster (since it targets the smallest balance), but avalanche typically clears your entire debt load in the same or less total time, since it minimizes interest accumulating along the way.

Can I mix the two strategies?

Some people target their highest-interest debt for extra payments but pick payoff order among similarly-costly debts based on balance size. This calculator compares the two pure strategies, but a hybrid approach is a reasonable real-world adjustment if it keeps you motivated.