⛓️ Debt Payoff Calculator
Add all your debts and compare the Avalanche (highest APR first) and Snowball (lowest balance first) payoff strategies. See exactly which debt gets paid off first, total months to freedom, and how much interest each method costs.
Payoff Order
How Each Method Works
Pay minimums on all debts, then apply all extra money to the debt with the highest APR. Mathematically optimal — saves the most interest.
Pay minimums on all debts, then attack the smallest balance first. Quick wins build momentum and motivation to keep going.
Example Scenario
Three debts: Credit Card $3,000 at 24%, Car Loan $8,000 at 7%, Student Loan $12,000 at 5%.
Avalanche: Targets credit card first (24% APR). Total interest ~$2,100. Saves ~$400 vs snowball.
Snowball: Pays off credit card first (lowest balance too, coincidentally). Motivation from early win.
Frequently Asked Questions
The avalanche method directs extra payments to the debt with the highest interest rate first while paying minimums on the rest. Once that debt is gone, roll its payment to the next highest rate. This approach minimizes total interest paid over time.
The snowball method targets the smallest balance first, regardless of interest rate. Once paid off, roll that payment to the next smallest. It produces quick wins that build psychological momentum, which can be very effective for people who need motivation.
The avalanche method almost always saves more total interest. However, the difference is often small (a few hundred dollars), and the snowball's motivational benefit is real. The best method is whichever one you'll actually stick to.
Track your progress visually, celebrate each payoff milestone, automate minimum payments to avoid missed payments, and use a calculator like this one to see your debt-free date. Knowing the exact finish line makes the journey much easier.
Related Calculators
Credit Card Payoff Calculator
Calculate how long it takes to pay off your credit card balance and total interest paid.
Loan Calculator
Calculate monthly payments, total interest, and amortization schedule for any loan.
Savings Calculator
Calculate how much your savings will grow with regular deposits and compound interest.