Debt Payoff Calculator

The debt snowball method pays off debts from smallest balance to largest, regardless of interest rate. You make minimum payments on all debts and put any extra money toward the smallest debt. When it's paid off, you roll that payment to the next smallest. It's psychologically motivating but costs more in interest.

The debt avalanche method targets debts with the highest interest rate first, saving the most money overall. You make minimum payments on all debts and put extra money toward the highest-rate debt. It's mathematically optimal but requires more patience since high-interest debts are often large.

The avalanche method saves more money in interest. The snowball method provides faster psychological wins. Research shows the snowball method leads to higher debt payoff completion rates because early wins build momentum. If motivation is your challenge, choose snowball. If minimizing cost matters most, choose avalanche.

For a typical American with $10,000 in credit card debt at 20% APR, the avalanche method saves roughly $500–$2,000 in interest compared to snowball. The real difference depends on how spread out your interest rates and balances are. Use our calculator to compare your specific situation.

Any amount helps, but even $50–$100/month extra dramatically shortens your payoff timeline. A $5,000 credit card at 20% APR takes 10+ years paying only the minimum. Add $100/month and you're done in 3 years — saving thousands in interest.