Debt Payoff Calculator

How to Use This Debt Payoff Calculator

Compare Snowball and Avalanche debt payoff strategies side by side. Enter your debts and see which method saves the most money, how long until you are debt-free, and the exact payment schedule for each debt.

1. Enter your values in the input fields provided.
2. The tool calculates results automatically as you type.
3. View detailed results and breakdowns below the calculator.
4. Copy or download results as needed.
5. All data stays in your browser — nothing is uploaded to any server.

Snowball vs Avalanche Method

The Debt Snowball method pays off debts from smallest balance to largest, regardless of interest rate. This provides quick psychological wins that keep you motivated. The Debt Avalanche method targets the highest interest rate first, saving you the most money mathematically. Both work — choose based on what keeps you consistent.

The Math Behind Debt Payoff

Interest compounds on your remaining balance. Even a 1-2% difference in the order you pay off debts can save hundreds or thousands of dollars over time. The Avalanche method is always mathematically optimal, but research from Harvard Business Review shows people are more likely to stick with the Snowball method due to the motivational boost of early wins.

Strategies to Accelerate Debt Payoff

Beyond choosing a payoff method, consider: making bi-weekly payments (results in one extra payment per year), rounding up payments to the nearest $50 or $100, applying windfalls (tax refunds, bonuses) to debt, balance transferring high-interest debt to 0% APR cards, and cutting non-essential expenses temporarily to increase payments.

Understanding Interest and APR

APR (Annual Percentage Rate) is the yearly cost of borrowing money. Credit cards typically charge 15-25% APR. Personal loans range from 6-36%. Student loans average 4-7%. Car loans range from 3-10%. Prioritizing high-APR debt saves the most money over time, which is why the Avalanche method is mathematically superior.