Debt Payoff
Calculator
Enter all your debts, set your monthly payment budget, and instantly compare the avalanche and snowball strategies. See your exact payoff date, total interest saved, and a month-by-month schedule.
| Month | Payment | Principal | Interest | Balance |
|---|
Avalanche method explained
Pay minimums on all debts, then direct every extra dollar to the debt with the highest interest rate. Mathematically optimal — you pay less total interest and get debt-free faster in most cases. Best for people who are motivated by numbers and can resist the urge to see quick wins.
Snowball method explained
Pay minimums on all debts, then attack the smallest balance first regardless of interest rate. You get your first "win" faster, which builds momentum and motivation. Research shows people using the snowball method are more likely to stick with their plan — behavioural psychology beats pure math for many people.
Which method should you choose?
If the interest savings between methods are small (under $500), choose snowball — the motivational boost is worth the extra cost. If the difference is large, use avalanche. If your highest-rate debt also happens to be your smallest balance, both methods give the same result. Some people use a hybrid: knock out one small debt first for momentum, then switch to avalanche.
The power of extra payments
Even $50 extra per month dramatically shortens your payoff timeline. A $5,000 credit card balance at 22% APR takes 27 years paying minimums and costs $12,000 in interest. Add $100/month extra and you're done in 3 years for $1,800 total interest — a $10,200 saving. Use this calculator to see your exact numbers.
Jordan has three debts: a credit card at 22.99% APR ($5,400), a credit card at 19.99% APR ($2,100), and a car loan at 6.9% APR ($8,500). Minimum payments total $370/month. Jordan can pay $600/month total.
| Strategy | Months to free | Total interest | vs minimums only |
|---|---|---|---|
| Minimums only | 312 months (26 yrs) | $14,820 | — |
| Avalanche ($600/mo) | 32 months | $2,140 | Saves $12,680 |
| Snowball ($600/mo) | 33 months | $2,290 | Saves $12,530 |
Both strategies save over $12,500 vs paying minimums. The avalanche saves $150 more, but snowball gives Jordan a first win in ~6 months (the $2,100 card). Choose based on what keeps you motivated.
Never pay just the minimum
Credit card minimums are designed to keep you in debt for decades. A $5,000 balance at 22% APR paying $100/month takes 94 months and costs $4,300 in interest. Add $50/month more and you're done in 46 months for $1,900 in interest.
Roll over payments (the "snowroll")
When you pay off a debt, don't reduce your total payment — redirect every dollar to the next target. This is what makes avalanche and snowball methods so powerful: your attack payment grows with each debt eliminated.
Consider a balance transfer
Many credit cards offer 0% APR for 12–21 months on balance transfers. Transferring $5,000 from a 22% card to a 0% card and paying $250/month means you're done in 20 months, paying only the transfer fee (usually 3–5%).
Find $100–200/month to accelerate
Audit subscriptions, reduce dining out, or sell unused items. Even $150/month extra on a $10,000 debt at 20% APR cuts payoff time from 10+ years to under 2. The math is brutally in your favour.
Compare the snowball and avalanche methods to find your fastest, cheapest path to debt freedom.