Debt Payoff Calculator - Snowball vs Avalanche
Plan your path to becoming debt-free with our free debt payoff calculator. Compare the debt snowball and debt avalanche methods to find the best strategy for your situation. See exactly how long it will take and how much interest you'll save.
Debt Snowball Method
The debt snowball method, popularized by Dave Ramsey, focuses on paying off debts from smallest balance to largest, regardless of interest rate. This approach provides quick psychological wins that help maintain motivation.
- List debts from smallest to largest balance
- Pay minimums on all debts except the smallest
- Put all extra money toward the smallest debt
- When paid off, roll that payment to the next smallest
Debt Avalanche Method
The debt avalanche method prioritizes debts by interest rate, tackling the highest-rate debt first. This is mathematically optimal and saves the most money on interest over time.
- List debts from highest to lowest interest rate
- Pay minimums on all debts except the highest-rate
- Put all extra money toward the highest-rate debt
- When paid off, roll that payment to the next highest
Which Method is Better?
- Choose Avalanche if: You're motivated by numbers and want to minimize interest paid
- Choose Snowball if: You need quick wins to stay motivated
- The difference: Often just a few hundred dollars over the life of the debt
- Best method: The one you'll actually stick with
How Extra Payments Help
Even small extra payments can dramatically reduce your payoff time. An extra $100/month on a $10,000 credit card at 20% APR can save you over $4,000 in interest and pay it off 3 years faster.
Tips for Faster Debt Payoff
- Negotiate lower interest rates with creditors
- Consider balance transfer cards for high-interest debt
- Automate your payments to stay on track
- Use windfalls (tax refunds, bonuses) for extra payments
- Cut expenses temporarily to accelerate payoff
- Consider a side hustle for extra income
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