Debt Payoff Calculator

Your Debts (one per line: balance,rate%,minPayment) Format: balance,annual rate %,minimum payment — one debt per line Enter at least one valid debt line.

Extra Monthly Payment ($)

Payoff Method

Time to Debt-Free

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Total Interest Paid

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How to Use This Tool

List each debt as balance,rate%,minimum payment — one per line.
Enter any extra amount you can pay each month beyond the minimums.
Choose Avalanche (pays off highest interest rate first — saves the most money) or Snowball (pays off smallest balance first — builds momentum), then calculate.

Avalanche vs. Snowball: Two Debt Payoff Strategies

Avalanche Method

Directs all extra payment toward the debt with the highest interest rate first, while paying minimums on everything else. This mathematically minimizes total interest paid and gets you debt-free in the least amount of time for a given extra payment amount.

Snowball Method

Directs all extra payment toward the debt with the smallest balance first, regardless of interest rate. This typically costs slightly more in total interest than avalanche, but many people find the quick wins of fully paying off smaller debts first more motivating, helping them stick with the plan.

Which Should You Choose?

If you're purely optimizing for the lowest total cost, avalanche wins mathematically every time. If you've struggled to stick with a debt payoff plan before, the psychological momentum of snowball's quick wins may make you more likely to actually follow through — and a plan you stick with beats a mathematically optimal plan you abandon.

How This Calculator Works

It simulates month-by-month payoff, applying interest to each debt, subtracting minimum payments, then directing your extra payment to whichever debt is highest priority under your chosen method — continuing until all debts reach zero.

Frequently Asked Questions

Which method saves more money overall?

The avalanche method (highest interest rate first) mathematically minimizes total interest paid in virtually all cases, since it eliminates your most expensive debt fastest.

Why would anyone choose snowball if avalanche saves more money?

Snowball's quick wins — fully eliminating smaller debts fast — can provide motivation and a sense of progress that helps some people stick with their payoff plan long-term, even at a slightly higher total interest cost.

What happens to minimum payments on paid-off debts?

Once a debt is fully paid off, its minimum payment amount gets redirected as additional extra payment toward the next priority debt, accelerating payoff further — this "snowballing" effect is factored into the simulation.

This calculator is provided for general informational and estimation purposes only. Results should not be treated as professional financial, tax, legal, medical, or engineering advice. Always verify critical calculations with a qualified professional or official source before making decisions.