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Debt Payoff Calculator

Compare snowball vs avalanche strategies to find the fastest way to become debt-free. Add your debts below and see how extra payments accelerate your payoff.

Your Debts

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Extra Monthly Payment

$200.00/ month
$0$500$1,000$1,500$2,000

Payoff Strategy

Snowball vs Avalanche Comparison

SnowballAvalanche
Total Interest$2,284.29 ✓$2,284.29
Total Payment$17,284.29 ✓$17,284.29
Months to Payoff32 months ✓32 months
Payoff DateOctober 2028 ✓October 2028

Avalanche Strategy Summary

Monthly Payment

$550.00

$350.00 minimums + $200.00 extra

Debt-Free Date

October 2028

32 months from now

Total Interest

$2,284.29

On $15,000.00 total debt

Savings vs snowball

$0.00

Both strategies cost the same

Remaining Balance Over Time

How Does Debt Payoff Work?

Paying off debt faster requires a strategic approach. The two most popular methods are the debt snowball and the debt avalanche. Both strategies involve making minimum payments on all debts and directing any extra money toward one target debt at a time. The difference lies in how you choose which debt to target first.

The Snowball Method

With the snowball method, you order your debts from smallest balance to largest and focus extra payments on the smallest debt first. Once that debt is eliminated, you roll its minimum payment into the next smallest debt -- creating a "snowball" effect. This method is powerful for motivation because you see individual debts disappear quickly, keeping you on track.

The Avalanche Method

The avalanche method orders debts by interest rate from highest to lowest. You direct all extra payments toward the debt with the highest interest rate first. This approach is mathematically optimal because it minimizes the total interest you pay over the life of your debts. However, if your highest-rate debt also has a large balance, it may take longer before you fully eliminate your first debt.

Which Strategy Should You Choose?

If saving the most money is your priority, the avalanche method is the better choice. If staying motivated matters more to you, the snowball method provides faster psychological wins. In practice, the difference in total interest between the two methods is often small. The most important factor is consistently making extra payments -- regardless of which strategy you choose.

Tips for Accelerating Debt Payoff

  • Automate your payments to ensure you never miss a minimum payment or forget to apply extra funds.
  • Use windfalls wisely -- apply tax refunds, bonuses, and unexpected income directly to your debt.
  • Avoid taking on new debt while paying off existing balances. Cut up credit cards if needed.
  • Consider balance transfers to a lower interest rate card, but watch out for transfer fees and promotional rate expiration dates.
  • Track your progress monthly. Seeing balances decrease keeps you motivated and accountable.

Frequently Asked Questions

What is the difference between the snowball and avalanche methods?

The snowball method pays off debts from smallest balance to largest, giving you quick psychological wins. The avalanche method targets the highest interest rate first, which typically saves you more money in total interest over time. Both methods apply all extra payments to one target debt while making minimum payments on the rest.

How much extra should I pay toward my debt each month?

Any extra amount helps, but even $50-$200 per month can significantly reduce your payoff timeline and total interest paid. Use the calculator above to see how different extra payment amounts affect your results. The key is to choose an amount you can sustain consistently.

Which debt payoff strategy is better?

The avalanche method is mathematically optimal because it minimizes total interest paid. However, the snowball method can be more motivating because you eliminate individual debts faster. The best strategy is the one you will stick with. If you need motivation, start with snowball; if you want to save the most money, choose avalanche.

Can I switch between snowball and avalanche strategies mid-way?

Yes, you can switch strategies at any time. Some people start with the snowball method to build momentum by paying off a few small debts, then switch to avalanche to minimize interest on larger, higher-rate debts. The important thing is to keep making consistent extra payments regardless of the method.