Debt Payoff Calculator

Calculate your path to becoming debt-free using either the snowball method (smallest balance first) or avalanche method (highest interest first). Enter up to 4 debts and any extra monthly payment to see your complete payoff timeline.

Snowball Method: Debts sorted by balance (lowest first). Avalanche Method: Debts sorted by interest rate (highest first). Each month: Interest = Balance * (Rate / 12), Principal = Payment - Interest, New Balance = Balance - Principal. Extra payment applied to target debt, then rolled to next when paid off.
Example with $200 extra payment using Snowball: Debt 1: $3,000 @ 22% min $75, Debt 2: $5,000 @ 19% min $100, Debt 3: $8,000 @ 16% min $160. Smallest debt gets $275/month ($75 + $200 extra), pays off in ~14 months, then $275 rolls to next debt.

What is the debt snowball method?

The debt snowball method focuses on paying off debts from smallest to largest balance, regardless of interest rate. You make minimum payments on all debts except the smallest, which gets all extra payments. When the smallest debt is paid off, you roll that payment into the next smallest debt, creating a "snowball" effect.

What is the debt avalanche method?

The debt avalanche method prioritizes debts by interest rate, paying off highest-rate debts first. This mathematically saves the most money on interest over time, though it may take longer to see your first debt paid off compared to the snowball method.

Which method saves more money - snowball or avalanche?

The avalanche method always saves more money on interest because it targets high-rate debts first. However, the snowball method provides quicker psychological wins that help some people stay motivated. The best method is the one you'll stick with.

Should I pay off debt or invest?

Generally, pay off high-interest debt (over 7-8%) before investing. For low-interest debt like mortgages, investing may yield better returns. Consider your risk tolerance, available emergency fund, and employer retirement match opportunities.

How much extra should I pay toward debt?

Pay as much extra as possible while maintaining a small emergency fund (at least $1,000). Every extra dollar reduces your principal and saves on future interest. Even an extra $50-100 per month can significantly shorten your payoff timeline.

What if I can only afford minimum payments?

Making minimum payments keeps you current but extends payoff time significantly. Look for ways to increase income (side gigs, overtime) or reduce expenses temporarily. Even $25 extra per month helps. Consider debt consolidation if you have good credit.