Debt Payoff Calculator

Both methods make minimum payments on all debts and direct any extra money toward one target debt at a time. The difference is which debt gets targeted first. The avalanche method targets the highest interest rate first this minimizes total interest paid and is mathematically optimal. The snowball method targets the lowest balance first this produces faster early wins (paying off individual debts sooner) which many people find motivating. For most borrowers, the avalanche saves more money; the snowball keeps more people on track psychologically.

The difference in total interest is typically 2–5% of total debt balance. On $30,000 of debt, that's $600–$1,500. The bigger driver of total interest paid is how much extra money you put toward debt each month, not the payoff order. The real risk of snowball is behavioral: if paying off small debts first leads you to stay more consistent and not abandon the plan, its slightly higher interest cost is worth it. If you have high-APR credit card debt alongside low-rate student loans, avalanche creates a much larger margin.

When one debt reaches zero using either method, its former minimum payment is freed up. In a disciplined payoff plan, this freed minimum rolls into the payment on the next target debt increasing the amount hitting the new target each month. This creates a 'cascade' or 'snowball' effect where payment power grows as debts are eliminated. The calculator automatically models this cascade, so payoff speed accelerates as you proceed through the debt list.

Include all consumer debts: credit cards, personal loans, car loans, student loans. Generally exclude mortgages from the priority payoff list mortgage rates are typically lower and the interest may be deductible. Also consider your emergency fund: paying down debt aggressively while holding no cash reserve is risky any unexpected expense would require new debt. A common approach is to hold 1 month of expenses in cash before aggressive payoff, and build to 3 months after becoming debt-free.

Any amount above your minimums accelerates payoff. Start by reviewing your budget for expenses that could be temporarily redirected. Even $100–$200/month extra makes a meaningful difference over a multi-year payoff period. The debt-free date shows exactly how many months earlier you'd pay off everything for each additional $100 you commit. The budget calculator can help identify where that money comes from.