Debt Payoff Calculator

Compare the debt snowball vs avalanche methods side-by-side. See which strategy saves you the most money and gets you debt-free faster.

Add your debts below to get a personalized payoff plan with total interest and timeline comparison.

Your Debts

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This extra amount is applied to the target debt each month

How to Use the Debt Payoff Calculator

  1. 1
    Add Your Debts: Click "Add Debt" for each debt you have — credit cards, student loans, car loans, medical bills, etc. Enter the name, current balance, interest rate (APR), and minimum monthly payment.
  2. 2
    Set Extra Payment: Enter any extra money you can put toward debt each month above the minimum payments. Even $50 extra can make a huge difference.
  3. 3
    Compare Strategies: See snowball (smallest balance first) vs avalanche (highest interest first) side-by-side with total interest paid, payoff dates, and a visual timeline.
  4. 4
    Choose Your Method: Avalanche saves the most money; snowball gives faster psychological wins. Pick what motivates you most!

Snowball vs Avalanche: Which Debt Payoff Method Is Best?

When paying off multiple debts, the two most popular strategies are the debt snowball and debt avalanche methods. Both work — the best one is the one you'll stick with.

Debt Snowball Method

Popularized by Dave Ramsey, the snowball method prioritizes smallest balance first, regardless of interest rate. You make minimum payments on everything and throw extra money at the smallest debt.

  • • Pro: Quick wins boost motivation — you see debts disappear fast
  • • Pro: Simplifies your bill payments as debts are eliminated
  • • Con: You may pay more in total interest

Debt Avalanche Method

The avalanche method prioritizes highest interest rate first. You make minimum payments on everything and throw extra money at the highest-rate debt.

  • • Pro: Mathematically optimal — saves the most in interest
  • • Pro: Often results in faster total payoff
  • • Con: Can feel slow if the highest-rate debt has a large balance

The truth? The difference in interest between the two methods is often small. The best method is the one that keeps you motivated. If you need quick wins, go snowball. If you're disciplined and want to optimize, go avalanche.

Frequently Asked Questions

What is the debt snowball method?

The debt snowball method involves paying off debts from smallest balance to largest, regardless of interest rate. You make minimum payments on all debts and put extra money toward the smallest debt. When it's paid off, you roll that payment into the next smallest debt.

What is the debt avalanche method?

The debt avalanche method prioritizes paying off debts with the highest interest rate first. You make minimum payments on all debts and put extra money toward the highest-rate debt. This approach minimizes total interest paid.

Which is better: snowball or avalanche?

Mathematically, the avalanche method saves more money in interest. However, the snowball method provides faster psychological wins which can help maintain motivation. The best method is the one you'll stick with consistently.

How much extra should I pay toward debt each month?

As much as you can comfortably afford after covering essential expenses and maintaining a small emergency fund. Even an extra $50-$100/month can save you thousands in interest and shave years off your payoff timeline.

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