How to use the debt payoff calculator
- List each debt with its balance, interest rate (APR) and minimum monthly payment.
- Enter the extra amount you can put toward debt each month on top of the minimums.
- Compare the two strategies: payoff time, total interest and the order in which each debt is cleared.
Debt snowball vs debt avalanche
| Debt snowball | Debt avalanche | |
|---|---|---|
| Pay extra toward | Smallest balance first | Highest interest rate first |
| Saves the most money | No | Yes |
| Quick wins | Yes — debts disappear fast | Can take longer to clear the first debt |
| Best for | Staying motivated | Minimizing total interest |
With both methods you pay the minimum on every debt. All extra money goes to one target debt. When it’s paid off, its payment “rolls” into the next target — the payment amount keeps growing like a snowball, so later debts disappear faster.
Mathematically, the avalanche always costs the same or less interest. But research on consumer behavior has found that the early wins of the snowball help many people stick with their plan. The best method is the one you’ll actually follow — the calculator shows exactly how much the difference costs for your debts.
Tips to become debt-free faster
- Find extra money: even $100 a month can cut years off your plan. Look at subscriptions, insurance quotes and side income.
- Stop adding new debt while you’re paying it down.
- Keep a small emergency fund (for example $1,000) so surprises don’t go back on a card — build it with the savings goal calculator.
- Lower your rates with a 0% balance transfer or a consolidation loan if you qualify.
- Put windfalls — tax refunds, bonuses — straight onto the target debt.
Frequently asked questions
Which is better, debt snowball or avalanche?
The avalanche saves the most interest. The snowball gives faster early wins, which helps many people stay motivated. The calculator shows the exact difference.
Does the calculator include mortgage debt?
You can add any debt, but most people leave the mortgage out and focus on credit cards, car loans, personal loans and student loans.
What if my minimum payments don’t cover the interest?
The calculator will warn you. You need to increase the payment or lower the rate, or the balance will keep growing.
Should I save or pay off debt first?
Many experts suggest a small emergency fund first, then paying off high-interest debt, then building savings further.