Debt Payoff Calculator
Debt payoff calculators compare strategies: snowball (smallest balance first) vs avalanche (highest interest first). Avalanche saves more money but snowball provides psychological wins. Calculate payoff timeline from minimum payments plus extra amount. For example, $15,000 credit card debt at 18% APR with $300/month payments takes 94 months and $13,172 interest. Adding $200 extra reduces to 36 months and $4,387 interest—saving $8,785.
Calculate how long to pay off your debts using the avalanche or snowball method. Compare strategies, see total interest paid, and visualize your payoff timeline. Add extra payments to see how much time and money you save.
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💡 Debt Payoff Tips
- Avalanche method saves the most money by targeting highest-interest debt first
- Snowball method builds momentum by eliminating smallest balances first
- Even $50 extra per month can shave years off your payoff date
- Always pay at least the minimum on every debt to avoid penalties
- Consider balance-transfer cards (0% intro APR) to reduce interest
Understanding Debt Payoff Strategies
Paying off debt is one of the most impactful financial decisions you can make. Two popular strategies — the Debt Avalanche and Debt Snowball — offer different approaches to becoming debt-free. Understanding the difference helps you choose the method that fits your personality and financial goals.
Debt Avalanche Method
The avalanche method prioritizes debts with the highest interest rate first. After making minimum payments on all debts, you direct any extra money toward the debt with the highest APR. Once that debt is paid off, you move to the next highest rate. This method minimizes the total interest you pay over time, making it the mathematically optimal strategy.
Debt Snowball Method
The snowball method prioritizes the smallest balance first, regardless of interest rate. The psychological wins from quickly eliminating entire debts can provide powerful motivation to stay on track. Research by behavioral economists suggests that people using the snowball method are more likely to stick with their plan, even though they may pay slightly more in total interest.
The Power of Extra Payments
Regardless of which strategy you choose, making extra payments is the single most impactful action you can take. Even modest additional amounts — $25, $50, or $100 per month — can dramatically reduce your payoff timeline and total interest. Use the calculator above to see exactly how much time and money you can save with different extra payment amounts.
🏔️ Avalanche vs ⛄ Snowball
| Feature | Avalanche | Snowball |
|---|---|---|
| Priority | Highest interest rate | Smallest balance |
| Saves most money | ✓ Yes | No |
| Quick wins | Slower | ✓ Faster |
| Motivation | Requires discipline | ✓ Built-in |
| Best for | High-interest debt (credit cards) | Many small debts |
How to Use
- Enter your value in the input field
- Click the Calculate/Convert button
- Copy the result to your clipboard
Frequently Asked Questions
- What is the difference between the debt avalanche and debt snowball methods?
- The debt avalanche method targets the debt with the highest interest rate first, saving you the most money in total interest. The debt snowball method targets the smallest balance first, giving you quick psychological wins. Both methods require paying minimum payments on all debts, then directing extra money to the target debt. Avalanche is mathematically optimal; snowball is better for motivation.
- How much faster can I pay off debt with extra payments?
- Even small extra payments can dramatically accelerate your payoff. For example, adding $100/month to a $10,000 credit card balance at 20% APR can save over $5,000 in interest and cut years off your payoff date. Use the calculator above to see the exact impact of different extra payment amounts on your specific debts.
- Should I use the avalanche or snowball method?
- Choose avalanche if you want to save the most money and can stay motivated without quick wins. Choose snowball if you have many small debts and need the psychological boost of eliminating balances quickly. The best method is the one you will stick with — both are far better than making only minimum payments.
- How is the minimum payment calculated on credit cards?
- Most credit card companies set minimum payments as the greater of a flat amount (e.g., $25-$35) or a percentage of your balance (typically 1-3%). Some also add any interest and fees. Paying only the minimum can take decades to pay off a balance and costs many times the original amount in interest. Always pay more than the minimum when possible.
- What debts should I pay off first?
- Prioritize high-interest debt like credit cards (15-25% APR) before low-interest debt like mortgages (6-7%) or student loans (5-8%). However, always make minimum payments on all debts to avoid penalties and credit damage. If you have a 401(k) employer match, contribute enough to get the full match before aggressively paying debt — it is an instant 50-100% return.
- How long does it take to pay off $10,000 in credit card debt?
- At 20% APR with a $200 minimum payment and no extra payments, it takes about 9 years and costs over $11,000 in interest — more than the original balance. Adding $100 extra per month cuts it to about 3.5 years and saves roughly $7,000 in interest. The exact timeline depends on your interest rate, payment amount, and whether you add extra payments.