Debt Payoff Calculator
Compare Snowball vs Avalanche strategies and find the fastest path to becoming debt-free.
Compare Snowball vs Avalanche strategies and find the fastest path to becoming debt-free.
Pay highest interest rate first — saves the most money.
Debt-Free In
6y 5m
Debt-Free Date
September 2032
Total Interest
$7,269
Total Paid
$52,269
Avalanche
6y 5m • $7,269 interest
Snowball
6y 5m • $7,269 interest
1y 5m
$851 interest
3 years
$1,582 interest
6y 5m
$4,836 interest
A debt payoff calculator compares two popular strategies for eliminating multiple debts: the Snowball method (paying off smallest balances first for psychological wins) and the Avalanche method (paying off highest interest rates first for mathematical optimization). Both strategies involve making minimum payments on all debts while directing any extra money toward one target debt.
Pay off debts from smallest balance to largest, regardless of interest rate. Each paid-off debt frees up its minimum payment to "snowball" into the next debt. This method provides quick wins and psychological momentum.
Pay off debts from highest interest rate to lowest. This is mathematically optimal — you'll pay less total interest and become debt-free slightly faster. However, it may take longer to see the first debt eliminated.
The percentage of your gross monthly income that goes toward debt payments. Lenders use this to assess creditworthiness. A DTI below 36% is considered healthy; above 43% may make it difficult to qualify for new credit.
Making only minimum payments on credit cards can take decades to pay off the balance and cost 2-3× the original amount in interest. Even small extra payments above the minimum dramatically reduce payoff time.
Emma has three debts and $200/month extra to put toward debt payoff.
Result: Avalanche method (highest rate first): Debt-free in 3 years 8 months, paying $6,842 in total interest. Snowball method (smallest balance first): Debt-free in 3 years 10 months, paying $7,514 in total interest. The Avalanche saves $672 and 2 months, but the Snowball eliminates the first debt 8 months sooner for a motivational boost.
Fact-Checked — All content is reviewed for accuracy against authoritative sources including IRS.gov, Federal Reserve data, and established financial research.
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