Debt Payoff Calculator
Compare snowball and avalanche methods to find the best debt repayment strategy for you.
Calculator
Results
Snowball Method
4 years 5 months
Avalanche Method
4 years 5 months
How It Works
The Debt Payoff Calculator compares two popular debt repayment strategies:
- Snowball Method: Pay minimum on all debts, then apply extra payments to the smallest balance first. This method provides quick wins and motivation.
- Avalanche Method: Pay minimum on all debts, then apply extra payments to the highest interest rate debt first. This method minimizes total interest paid and is mathematically optimal.
The calculator uses the following steps for each method:
- Apply minimum payments to all debts
- Apply extra payment to the target debt (smallest balance or highest interest rate)
- Calculate interest and update balances
- Repeat until all debts are paid off
The results show how long it will take to pay off all debts using each method, allowing you to choose the strategy that works best for your situation.
How to Use
- Enter the details for each of your debts: name, balance, interest rate, and minimum payment.
- Use the "Add Debt" button to include all your debts.
- Specify the extra amount you can pay towards your debts each month.
- Review the results, which show:
- Time to pay off all debts using the Snowball method
- Time to pay off all debts using the Avalanche method
- A graph comparing the total balance over time for both methods
- Compare the two methods to decide which strategy works best for your financial situation and goals.
- Adjust your debts or extra payment amount to see how it affects your payoff timeline.