Debt Payoff Calculator
Compare snowball and avalanche payoff strategies, track payoff order, and see how extra payments reduce your debt-free date and total interest.
| Debt Name | Balance | APR (%) | Min Payment | Action |
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Payoff Order (Snowball)
Method Comparison
Debt Payoff Calculator — Snowball & Avalanche Methods
This calculator supports both major debt payoff strategies: snowball and avalanche. Both methods pay minimums on every debt and direct extra money to one target debt at a time. The difference is how they choose that target.
How the Snowball Method Works
The snowball method targets the debt with the smallest balance first. Once that debt is eliminated, its freed-up payment rolls into the next smallest debt. This approach creates quick psychological wins that build momentum and keep you motivated.
How the Avalanche Method Works
The avalanche method targets the debt with the highest interest rate first, regardless of balance. This approach minimizes the total interest you pay over the life of your debts. It is mathematically optimal but may take longer to see your first debt fully eliminated.
Snowball vs Avalanche — Which Is Better?
The avalanche method typically saves more in total interest. The snowball method provides faster emotional wins. Research from Harvard Business School suggests that the psychological boost of early payoffs can increase the likelihood of sticking with a debt repayment plan. The best strategy is the one you can sustain — use this calculator to compare both with your actual numbers.
Using Extra Payments Strategically
Even modest extra monthly payments can dramatically shorten your payoff timeline. Any bonus, tax refund, or temporary cash flow improvement can be directed to your current target debt to accelerate elimination. This calculator shows you exactly how much time and interest each extra dollar saves.
Frequently Asked Questions
What is the difference between the snowball and avalanche methods?
The snowball method targets the smallest balance first for quick psychological wins. The avalanche method targets the highest interest rate first to minimize total interest paid. Both pay minimums on all debts and direct extra money to one target debt.
Which method saves more money — snowball or avalanche?
The avalanche method typically saves more in total interest because it prioritizes high-rate debts. However, the difference depends on your specific balances and rates. This calculator shows both so you can compare with your actual numbers.
Do I still pay minimums on all debts?
Yes. Both methods require paying the minimum on every debt each month. Only the extra payment above the total minimum is directed to the target debt.
Can I add extra monthly payments to accelerate payoff?
Yes. Enter any extra monthly amount and the calculator shows how it reduces your payoff timeline and total interest for both methods.
Is my financial data private?
Yes. All calculations run entirely in your browser. No debt data is sent to any server.