Debt Payoff Calculator
Compare avalanche vs snowball to find your fastest path to debt freedom
Stop guessing and start knowing. This calculator compares the debt avalanche (highest interest first) and debt snowball (smallest balance first) methods side-by-side. See your exact debt-free date, total interest costs, and month-by-month progress for both strategies.
Open Source & Transparent
All calculations are open source and verifiable on GitHub. We believe in transparency and welcome contributions to improve our tools.
Your Debt Freedom Date
Moderate - Under 5 Yearsavalanche Method
January 2030
Time to Freedom
4y 1m
Total Interest
$3,929
Total Debt
$30,000
Your Debts
Add all your debts to compare payoff strategies
Extra Monthly Payment
Amount above minimum payments to accelerate your payoff
Adding $300/month will dramatically speed up your payoff!
Payoff Strategy
Debt Summary
Total Debt
$30,000
Minimum Payments
$400/mo
Extra Payment
$300/mo
Total Monthly Payment
$700/mo
Monthly Interest Accruing
$192
Quick Stats
Tips to Accelerate Your Payoff
💰 Apply windfalls immediately
Tax refunds, bonuses, or gift money should go straight to your highest-priority debt.
📉 Negotiate lower rates
Call your credit card companies and ask for a lower APR - it's worth trying.
🚫 Stop adding new debt
You can't dig out of a hole while still digging. Freeze or cut up cards if needed.
🔄 Review monthly
Check your progress each month. Small wins compound into major victories over time.
Understanding Debt Payoff Strategies
Getting out of debt requires a systematic approach. The two most popular strategies—avalanche and snowball—both work by focusing your extra payments on one debt at a time while maintaining minimums on others. The difference lies in which debt you target first.
Both methods have proven track records. Avalanche is mathematically optimal, saving you the most money. Snowball is behaviorally optimal, keeping you motivated with quick wins. The best method is the one you'll actually stick with.
The Debt Avalanche Method
With avalanche, you list your debts by interest rate from highest to lowest, then attack the highest-rate debt first with all extra payments. This minimizes the total interest you pay because you're eliminating the most expensive debt first.
Example Payoff Order (Avalanche):
- Credit Card at 24.99% APR → Pay first
- Personal Loan at 12% APR
- Car Loan at 6% APR
- Student Loan at 4.5% APR → Pay last
The Debt Snowball Method
With snowball, you list debts by balance from smallest to largest, ignoring interest rates. You pay off the smallest debt first for a quick win, then "snowball" that payment into the next smallest. Each debt eliminated frees up more money for the next.
Example Payoff Order (Snowball):
- Medical Bill $800 → Pay first
- Credit Card $3,000
- Car Loan $12,000
- Student Loan $25,000 → Pay last
Avalanche vs Snowball: Which Is Right For You?
Choose Avalanche If...
- You're motivated by saving the most money possible
- You have high-interest credit card debt (15%+ APR)
- You're disciplined and can stay focused on long-term goals
- Your debts have significantly different interest rates
Choose Snowball If...
- You need quick wins to stay motivated
- You have multiple small debts you want to eliminate
- You've struggled to stick to debt payoff plans before
- Your debts have similar interest rates
The truth is: The best debt payoff method is the one you'll actually stick to. Use our calculator above to see the exact difference in your situation, then choose based on what will keep you motivated.
The Power of Extra Payments
Extra payments are the secret weapon in debt payoff. Here's why: when you only pay minimums, most of your payment goes toward interest, not principal. Extra payments go directly to principal, reducing future interest charges.
$100
Extra/Month
Shaves years off
$250
Extra/Month
Significant impact
$500
Extra/Month
Accelerated payoff
$1000+
Extra/Month
Aggressive attack
Tip: Use our calculator to see exactly how extra payments affect your debt-free date and total interest.
Frequently Asked Questions
Should I pay more than the minimum payment? â–¼
Absolutely. Paying only the minimum extends your payoff timeline dramatically and costs significantly more in interest. Even an extra $50-100 per month can shave years off your debt and save thousands in interest charges. The minimum payment is designed to maximize the lender's interest income, not to get you debt-free quickly.
Can I use both methods together? â–¼
While you should pick one primary strategy for consistency, you can adjust as needed. Some people start with snowball for quick wins, then switch to avalanche once they've built momentum. The key is having a plan and sticking to it—don't keep switching back and forth.
What if I can't afford extra payments right now? â–¼
Start by reviewing your budget for any discretionary spending you can reduce—subscriptions, dining out, entertainment. Consider side income opportunities like freelancing or selling unused items. Negotiate lower interest rates with your creditors. Even $25 extra per month helps more than you might think.
Should I close credit cards after paying them off? â–¼
Generally, no—closing cards can hurt your credit score by reducing available credit and shortening credit history. Instead, keep the card open with a zero balance (or small recurring charge you pay off monthly). However, if a card has an annual fee or you can't trust yourself not to use it, closing may be the right choice for you.
What about debt consolidation or balance transfers? â–¼
Balance transfers to 0% APR cards or debt consolidation loans can be powerful tools if used correctly. They work best if you're disciplined enough to pay off the balance before the promotional period ends. Be aware of transfer fees (usually 3-5%) and the risk of accumulating more debt on the old cards. These tools complement avalanche/snowball strategies but don't replace the need for a payoff plan.
Important Considerations
- • Build an emergency fund first: Have $500-1,000 saved before aggressively attacking debt. This prevents new debt when emergencies happen.
- • Don't neglect retirement: If your employer matches 401(k) contributions, get that free money even while paying off debt. It's an instant 50-100% return.
- • Address the root cause: Debt payoff only works if you stop adding new debt. Create a budget and understand why you got into debt in the first place.
- • This calculator is for planning: Real-world payoff may vary slightly due to statement cycles, variable rates, and fee changes. Use as a guide, not a guarantee.
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