Debt Payoff Calculator

Compare debt payoff strategies and find the fastest, most cost-effective way to eliminate your debt.

Debt Payoff Strategies

Avalanche Method

Pay minimum payments on all debts and direct any extra money toward the debt with the highest interest rate first. Once paid off, roll that payment into the next highest-rate debt.

Best for: Minimizing total interest paid over time.

Snowball Method

Pay minimum payments on all debts and direct any extra money toward the debt with the smallest balance first. Once paid off, roll that payment into the next smallest balance.

Best for: Building momentum and staying motivated by eliminating debts quickly.

Which Method Should You Choose?

The avalanche method saves more money in total interest. The snowball method can be more psychologically motivating. The best method is the one you will consistently follow. Both result in becoming debt-free faster than paying minimums alone.

How to Use This Calculator

1. Enter each debt with its current balance, interest rate, and minimum monthly payment
2. Enter any extra monthly amount you can put toward debt
3. Compare the payoff timeline and total interest under each strategy

Frequently Asked Questions

What about 0% promotional interest rates?

Treat 0% promotional rates as temporary. Plan to pay the balance before the promotional period ends to avoid retroactive interest charges at the regular rate.

Should I invest while paying off debt?

It depends on your interest rates. High-interest debt (above 7-8%) generally should be paid off before investing, as the guaranteed return from eliminating debt exceeds expected investment returns.