Master Your Finances with Our Debt Payoff Calculator
Becoming debt-free is one of the most liberating financial milestones you can achieve. Our debt payoff calculator is designed to empower you by modeling the two most popular repayment strategies: the Debt Snowball and the Debt Avalanche.
What is the Debt Snowball Method?
The Debt Snowball calculator strategy focuses on psychological wins. You list your debts from smallest balance to largest balance, ignoring the interest rates. You pay the minimum on everything except the smallest debt, where you throw every extra dollar you have. Once that small debt is gone, you roll its payment into the next smallest. It builds momentum—like a snowball rolling down a hill!
What is the Debt Avalanche Method?
The Debt Avalanche calculator strategy focuses on mathematical efficiency. You list your debts from the highest interest rate to the lowest. You throw all extra money at the debt costing you the most in interest. While it might take longer to see the first debt wiped out, this method guarantees you pay the least amount of total interest over time.
Which Strategy is Best?
The best strategy is the one you actually stick with. If you need quick wins to stay motivated, choose the Snowball. If you want to mathematically optimize your money and pay the absolute minimum to the banks, choose the Avalanche. Use our comparison tool above to see exactly how much time and money each strategy saves you!