Debt Payoff Calculator

⛄ What is the Debt Snowball Method?

The debt snowball method focuses on paying off your smallest debts first, regardless of interest rate. As you eliminate each small debt, you gain momentum and motivation, rolling the freed-up payments into the next smallest debt.

Best for: People who need quick wins for motivation and psychological benefits.

🏔️ What is the Debt Avalanche Method?

The debt avalanche method prioritizes paying off debts with the highest interest rates first. This mathematically optimal approach minimizes the total interest you'll pay over time.

Best for: People focused on saving the most money and who can stay disciplined without quick wins.

💡 Which Strategy Should You Choose?

Choose Snowball if: You need motivation, have multiple small debts, or struggled with debt payoff before.

Choose Avalanche if: You're disciplined, want to save maximum money on interest, and have high-interest debts.

The truth: The best method is the one you'll actually stick with! Both strategies work—consistency matters more than the strategy.

How much extra should I pay toward debt?

Any extra amount helps! Even an additional $50-100 per month can significantly reduce your payoff time and total interest. Use this calculator to experiment with different extra payment amounts to find what works for your budget.

Should I pay off debt or save for emergencies?

Financial experts recommend having a small emergency fund ($500-1,000) before aggressively paying down debt. This prevents you from going deeper into debt when unexpected expenses arise.

What about credit card debt with 0% intro APR?

For 0% APR promotional periods, focus on other high-interest debts first in an avalanche approach. Just ensure you pay off the 0% balance before the promotional period ends to avoid retroactive interest charges.

How does debt consolidation compare to these strategies?

Debt consolidation can lower your interest rate by combining multiple debts into one loan. It works well with avalanche and snowball strategies if you get a lower rate and avoid accumulating new debt.