Debt Payoff Calculator
Create a debt payoff plan using avalanche or snowball method.
The Debt Payoff Calculator shows how long it will take to eliminate your debts and compares two popular strategies: the Avalanche (pay highest-rate debt first to minimize interest) and the Snowball (pay lowest-balance debt first for psychological wins). Use this to accelerate your path to debt freedom.
Examples
Avalanche vs Snowball
Frequently Asked Questions
What is the debt avalanche method?
What is the debt snowball method?
How much extra should I pay?
Quick Tips
- •The avalanche method saves the most money in interest.
- •The snowball method helps with motivation by eliminating debts faster.
- •Both strategies beat paying only minimum payments by a wide margin.
- •Consider consolidating high-rate debts into a lower-rate loan.
The Debt Payoff Calculator shows how long it will take to eliminate your debts and compares two popular strategies: the Avalanche (pay highest-rate debt first to minimize interest) and the Snowball (pay lowest-balance debt first for psychological wins). Use this to accelerate your path to debt freedom.
How to Use This Calculator
Enter your debts as a JSON array with name, balance, rate, and minPayment for each. Set the extra monthly payment you can afford above minimums. Choose Avalanche (pays highest rate first) or Snowball (pays lowest balance first). Click Calculate to see payoff order, timeline, and a comparison of both strategies.
Understanding the Formula
Monthly Interest = Balance * (Annual Rate / 12). Avalanche: target highest-rate debt first. Snowball: target lowest-balance debt first. Freed-up minimum payments roll into the next target debt.
Examples
Avalanche vs Snowball
With $8,000 total debt across two cards (18.99% and 22.99%) and $200 extra monthly, avalanche typically saves more interest, while snowball provides faster first wins.
Frequently Asked Questions
What is the debt avalanche method?
Pay minimums on all debts, then put all extra money toward the debt with the highest interest rate. This minimizes total interest paid.
What is the debt snowball method?
Pay minimums on all debts, then put all extra money toward the debt with the smallest balance. This creates quick psychological wins.
How much extra should I pay?
Any amount helps. Even $50-100 extra per month can save thousands in interest and years of payments.
Assumptions & Limitations
- Interest rates remain constant for each debt; actual rates may increase or decrease based on account terms.
- Minimum payments remain fixed; some cards increase minimum payments or decrease APR over time.
- Extra payments are made consistently each month; ability to pay extra may fluctuate based on income.
- No new debt is added during payoff; calculator assumes you stop using credit cards while paying them down.
- Credit score improvements are not modeled; paying off debt increases credit scores, which could lower future interest rates.