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Debt Payoff Calculator

Compare debt payoff strategies and find the fastest way to become debt-free with snowball vs avalanche methods.

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Debt Name
Balance
Min Payment
Interest Rate
Payoff Strategy
Extra Monthly Payment
Debt Avalanche
Pay off highest interest rate first (saves more money)
Debt Snowball
Pay off smallest balance first (psychological motivation)
Avalanche Method Results
Time to Debt Freedom 1 year, 3 months
Total Interest Paid $1,739.98
Interest Saved vs. Minimum Payments $7,295.66
Total Amount Paid $17,739.98
Original Debt Total $16,000.00
Strategy Comparison
Snowball Method
Time: 5 years, 5 months
Interest: $8,176.25
Avalanche Method
Time: 1 year, 3 months
Interest: $1,739.98
💡 Recommendation
Avalanche method saves $6,436.28 and 4 years, 2 months faster
Debt Payoff Strategies
📉
Debt Avalanche

Pay minimums on all debts, then put extra money toward the highest interest rate debt. This is mathematically optimal and saves the most money.

☃️
Debt Snowball

Pay minimums on all debts, then focus extra money on the smallest balance. This provides quick psychological wins and motivation.

💵
Extra Payments

Any amount above the minimum payment can significantly reduce total interest and the time to become debt-free.

🔄
Debt Consolidation

Combine multiple debts into one with a lower interest rate to simplify payments and potentially save money.

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Consistency

The most important factor is staying consistent with your chosen strategy and making payments on time.

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