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💳 Free Debt Payoff Calculator

Compare snowball and avalanche debt payoff strategies.

What is this tool?

Our free debt payoff calculator compares two popular debt repayment strategies: the avalanche method (paying highest APR first) and the snowball method (paying smallest balance first). Both strategies involve making minimum payments on all debts while directing extra money toward one target debt.

How it works

The calculator simulates month-by-month debt repayment under both strategies. The avalanche method minimizes total interest paid. The snowball method provides psychological wins by eliminating smaller debts first.

How to use

  1. Enter each debt with name, balance, APR, and minimum payment.
  2. Set your extra monthly payment amount.
  3. Click Compare Strategies to see which method gets you debt-free faster.

Reference Table

MethodBest ForSaves
AvalancheMathematical optimizationMost interest
SnowballBehavioral motivationFirst debt freed fastest

Frequently Asked Questions

Which method is better?

Avalanche saves more in interest, but snowball has higher success rates because of psychological momentum. Choose the one you can stick with.

Should I pay off debt or invest?

Generally, pay off high-interest debt (APR > 7%) before investing. For low-interest debt (APR < 4%), investing may be mathematically better.

Tips & Advice

Snowball is recommended if you need motivation. Avalanche if you want to minimize total cost. The best strategy is the one you actually follow consistently.

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