Debt Payoff Calculator
Calculate your debt-free date using the snowball or avalanche method. Compare strategies, see total interest paid, and create your personalized debt payoff plan.
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Compare Strategies
See the difference between snowball and avalanche methods to choose the best strategy for your situation.
Know Your Freedom Date
Find out exactly when you'll be debt-free based on your payment strategy and extra payments.
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All calculations happen in your browser. Your debt information is never sent to any server.
Debt Payoff Strategies
Debt Snowball Method
The snowball method prioritizes paying off your smallest debt first, regardless of interest rate. Make minimum payments on all debts, then put all extra money toward the smallest balance. Once paid off, roll that payment into the next smallest debt.
Pros:
- • Quick wins provide psychological motivation
- • Reduces number of accounts faster
- • Easier to stick with long-term
Debt Avalanche Method
The avalanche method prioritizes paying off your highest-interest debt first. Make minimum payments on all debts, then put all extra money toward the debt with the highest APR. This saves the most money in interest charges.
Pros:
- • Mathematically optimal - saves most money
- • Minimizes total interest paid
- • Fastest path to reducing debt burden
Which Strategy Should You Choose?
The avalanche method saves more money mathematically, but the snowball method provides psychological wins that help many people stay motivated. If you need quick wins to stay committed, choose snowball. If you're motivated by saving money and can wait longer for your first payoff, choose avalanche. Either method works - the best strategy is the one you'll actually stick with.
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method focuses on paying off debts from smallest to largest balance, regardless of interest rate. You make minimum payments on all debts and put extra money toward the smallest debt. Once that's paid off, you roll that payment into the next smallest debt. This creates psychological wins that help keep you motivated.
What is the debt avalanche method?
The debt avalanche method prioritizes debts by interest rate, paying off the highest-interest debt first. You make minimum payments on all debts and put extra money toward the highest-interest debt. This method saves the most money in interest charges but may take longer to see your first debt paid off.
Which debt payoff strategy is better?
The avalanche method saves more money in interest, making it mathematically optimal. However, the snowball method provides quicker wins that can improve motivation and adherence. Choose avalanche if you're motivated by saving money, or snowball if you need psychological momentum.
How does the debt payoff calculator work?
Enter each debt's balance, APR, and minimum payment. Add any extra payment amount you can afford monthly. Choose snowball (lowest balance first) or avalanche (highest interest first). The calculator shows your payoff timeline, total interest paid, and when you'll be debt-free.
What if my minimum payment doesn't cover the interest?
If your minimum payment is less than the monthly interest charge, your debt will grow instead of shrink. You must increase your minimum payment to at least cover the interest plus some principal to make progress on paying off the debt.
Is my debt information private?
Yes, absolutely! All calculations happen entirely in your browser. Your debt information is never sent to any server, ensuring complete privacy and security.