Debt Payoff Calculator

The debt avalanche method orders your debts from highest to lowest interest rate. You make minimum payments on everything, then throw every extra dollar at the highest-rate debt. Once that's paid off, you redirect its payment to the next highest rate. This method always saves the most in total interest, and for debts with significantly different rates, the savings can be substantial.

The debt snowball method orders debts from smallest to largest balance, regardless of interest rate. You attack the smallest balance first, then roll that payment into the next smallest. While this may cost slightly more in interest than the avalanche approach, the quick wins build momentum and motivation. Research shows that people who use the snowball method are more likely to stick with their plan and pay off all their debt.

The key to faster debt payoff is freeing up additional money beyond minimums. Start by auditing subscriptions and recurring charges — most people find $50-200/month in forgotten or underused services. Consider selling items you no longer need, negotiating lower rates on insurance or bills, and redirecting windfalls (tax refunds, bonuses, gifts) directly to debt. Every extra dollar you put toward your target debt accelerates the payoff timeline.