Debt Payoff Calculator
Compare the debt avalanche and snowball payoff strategies. See which method helps you become debt-free faster while saving the most money.
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Current debt balance
Annual interest rate
Minimum monthly payment
Current debt balance
Annual interest rate
Minimum monthly payment
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Minimum required: $570
Compare Strategies
Payoff Timeline
Avalanche vs Snowball Strategy
Debt Avalanche Method
- ✓ Pay off debts with highest interest rates first
- ✓ Saves the most money on interest over time
- ✓ Mathematically optimal approach
- ✓ Better for people motivated by math and efficiency
Debt Snowball Method
- ✓ Pay off debts with lowest balances first
- ✓ Provides psychological wins as debts disappear faster
- ✓ Builds momentum and motivation
- ✓ Better for people who need early successes to stay motivated
Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method involves paying off debts with the highest interest rates first while making minimum payments on all others. Once the highest-interest debt is paid off, you move to the next highest, and so on. This method saves the most money on interest over time.
What is the debt snowball method?
The debt snowball method involves paying off debts with the smallest balances first while making minimum payments on all others. Once the smallest debt is paid off, you move to the next smallest. This method provides psychological wins and builds momentum, though it may cost more in interest.
Which debt payoff strategy is better?
The avalanche method saves more money mathematically by paying less interest overall. However, the snowball method can be more motivating for some people because they see debts disappear faster, which helps them stay committed. The best strategy is the one you'll stick with long-term.
Can I use both methods together?
Yes, you can combine strategies. For example, you might use the snowball method to pay off one or two small debts quickly for motivation, then switch to the avalanche method for the remaining larger debts to maximize interest savings.