Debt Payoff Calculator interactive tool
Calculator
Result
29
Using Debt Snowball
$1,991.85
$11,991.85
What Is Debt Payoff?
Getting out of debt requires a plan. A debt payoff calculator helps you map out your journey to financial freedom by comparing the two most popular debt reduction strategies: the Debt Snowball and the Debt Avalanche.
Snowball vs. Avalanche Method
- Debt Snowball: You focus all extra payments on the debt with the smallest balance while paying minimums on the rest. Once the smallest debt is paid off, you roll its payment into the next smallest. This method provides quick psychological wins and builds momentum.
- Debt Avalanche: You focus all extra payments on the debt with the highest interest rate. This method is mathematically optimal and saves you the most money in total interest over time.
How to Accelerate Your Payoff
Enter your current balances, interest rates, minimum payments, and extra monthly amount to estimate the payoff timeline. Try a few extra-payment amounts to compare the possible change in months and interest.
How To Use the Debt Payoff Calculator
- Add each debt with balance, interest rate, and minimum payment.
- Choose strategy: Snowball (smallest balance first) or Avalanche (highest rate first).
- Enter how much extra you can pay toward debt each month.
- Review months to pay off and total interest.
- Add or remove debts as needed.
Debt snowball versus avalanche payoff
This debt payoff calculator compares the snowball method, which prioritizes the smallest balance, with the avalanche method, which prioritizes the highest interest rate. Add each balance, minimum payment, rate, and extra monthly amount to see the modeled payoff timeline.
Need the formula or convention behind this result? Read the calculator methods and assumptions.