Debt Payoff Calculator
Add your debts, set an extra monthly payment, and compare the snowball vs avalanche strategies side by side. See your debt-free date and total interest saved.
Payoff Date
6y 11m
total time
Total Interest
$9,860
Total Debt
$45,000
Monthly Payment
$950
$750 min + $200 extra
Payoff Order — Avalanche
Avalanche vs Snowball — Balance Over Time
AI Financial Advisor
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How to Use This Calculator
Enter each of your debts with its current balance, annual interest rate, and minimum monthly payment. Add any extra amount you can put toward debt each month. The calculator simulates both strategies and shows your payoff timeline, total interest, and payoff order. Toggle between methods to compare them directly.
Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method prioritizes paying off the debt with the highest interest rate first, while making minimum payments on all others. Once the highest-rate debt is paid off, the freed payment rolls into the next highest. This method minimizes total interest paid.
What is the debt snowball method?
The debt snowball method pays off the smallest balance first regardless of interest rate. The psychological wins of eliminating individual debts keep motivation high. It typically costs more in total interest but provides faster early momentum.
Which method should I choose?
If you are motivated by numbers, choose avalanche — it saves the most money. If you need psychological wins to stay on track, choose snowball. Research shows the snowball method has higher completion rates because the early victories build momentum.
What is the extra monthly payment?
The extra payment is any amount above your combined minimum payments that you can put toward debt each month. This extra amount is always directed at your target debt (the highest-rate or lowest-balance depending on method). It dramatically accelerates your payoff timeline.
How does the freed minimum work?
When a debt is fully paid off, its minimum payment does not disappear — it gets added to your monthly extra and applied to the next debt. This "snowball" or "avalanche" of payments accelerates as each debt is eliminated.