Create a personalized plan to become debt-free. Add your debts, choose between avalanche and snowball strategies, and see exactly how much time and money you can save with extra payments.
2 In-Depth Guides
Learn the two most effective debt payoff strategies, how they compare, and which one is right for your financial situation. Includes step-by-step action plan.
Read Full GuideA practical, no-shame guide to eliminating $50,000 in debt. Includes month-by-month strategy, negotiation tactics, and real timelines using both avalanche and snowball methods.
Read Full GuideOur free debt payoff calculator helps you build a clear, actionable plan to eliminate your debts. Simply enter each debt's name, current balance, annual interest rate (APR), and minimum monthly payment. Then set an extra monthly payment amount and choose your preferred strategy. The calculator instantly shows your projected payoff timeline, total interest cost, and how much you save compared to making only minimum payments.
The avalanche method targets the debt with the highest interest rate first. You make minimum payments on all debts, then direct every extra dollar toward the highest-rate balance. Once it is paid off, you move to the next highest rate.
The snowball method targets the debt with the smallest balance first, regardless of interest rate. You make minimum payments on everything else and throw extra money at the smallest debt. Once gone, you roll that payment into the next smallest.
Both methods work -- the best strategy is the one you will stick with. Research from Harvard Business School suggests that the psychological boost of the snowball method helps many people stay committed. However, if you are disciplined and want to minimize total cost, the avalanche method is the mathematically superior choice. Our calculator compares both side-by-side so you can see the exact difference for your situation.
The debt avalanche method prioritizes paying off debts with the highest interest rates first while making minimum payments on all other debts. Once the highest-rate debt is paid off, you roll that payment into the next highest-rate debt. This method saves you the most money in total interest paid over time.
The debt snowball method prioritizes paying off debts with the smallest balances first, regardless of interest rate. As each small debt is eliminated, you roll that payment into the next smallest debt. This method provides quick psychological wins that help keep you motivated throughout your debt payoff journey.
Mathematically, the avalanche method almost always saves more money in interest. However, the snowball method can be more effective for people who need motivational wins to stay on track. The best method is the one you will stick with consistently. Our calculator compares both strategies so you can make an informed choice.
Any extra amount helps, but even an additional $50-$200 per month can significantly reduce your payoff time and total interest. Use our calculator to see the impact of different extra payment amounts on your specific debts. The key is to find an amount that is sustainable for your budget.
Financial experts generally recommend building a small emergency fund ($1,000-$2,000) first, then aggressively paying off high-interest debt (above 7-8% APR), and then building full savings. Low-interest debt like mortgages can often be paid off at the normal pace while you invest the difference.
Our calculator uses standard amortization formulas and provides accurate projections based on the information you enter. Actual results may vary slightly due to changes in interest rates, additional charges, or changes in your payment amounts. The calculator assumes fixed interest rates and consistent payments.
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