Debt Paydown Calculator
Compare snowball vs avalanche strategies. See exactly how extra payments accelerate your path to debt freedom.
Strategies for Debt Freedom
High-interest debt is the enemy of wealth building. While your investments might earn 7-10% annually, credit card debt often costs 20%+ in interest. Paying off debt first provides a guaranteed return equal to the interest rate you eliminate. This calculator compares two popular payoff strategies.
The Avalanche method targets the highest interest rate first, minimizing total interest paid. It's mathematically optimal but requires patience since high-rate balances are often large. The Snowball method targets the smallest balance first, providing quick wins that build motivation. Studies show people often succeed better with snowball despite paying slightly more interest.
Enter your debts below to see exactly how much you'll save with each strategy and when you'll be debt-free. Even small extra monthly payments can dramatically accelerate your payoff timeline.
Your Debts
Payment Acceleration
Avalanche Wins
Pay highest interest first to save $1,005 in interest.
Payoff Timeline
Total Debt
Combined balance across all debts
Debt-Free Date
Using avalanche strategy
Total Interest
Interest paid over the life of debt
Interest Saved
By choosing avalanche
Snowball vs Avalanche
Debt Snowball
Pay smallest balance first. Quick wins build momentum and motivation. Best if you need psychological boosts to stay on track.
Debt Avalanche
Pay highest interest first. Mathematically optimal — saves the most money. Best if you're disciplined and focused on total cost.
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