Debt Payoff Calculator
Calculate how long to pay off your debt and total interest
Debt Payoff Calculator
Stack or snowball debts, compare strategies, and pick the fastest payoff path.
Calculate Your Debt Payoff Strategy
Total amount you can pay toward all debts monthly
Your Debts
Payoff Strategy Comparison
Avalanche (Highest Rate First)
21 months
1.8 years
Total Interest:
$2,347
Snowball (Lowest Balance First)
21 months
1.8 years
Total Interest:
$2,347
Recommended: Avalanche
Saves $0 in interest
Debt Summary
Understanding Debt Payoff Strategies
Choosing the right debt payoff strategy can save you thousands of dollars and years of payments. The two most popular methods are the Avalanche method (paying highest interest rates first) and the Snowball method (paying smallest balances first).
While the Avalanche method saves more money in interest, the Snowball method provides psychological wins by eliminating debts faster, which can help you stay motivated on your debt-free journey.
Debt Payoff Methods Explained
❄️ Avalanche Method (Highest Interest First)
Focus extra payments on the debt with the highest interest rate:
- • Mathematically optimal - saves the most money
- • Pay minimums on all debts
- • Put all extra money toward highest APR debt
- • Once paid off, move to next highest rate
- • Best for those motivated by numbers and savings
⚡ Snowball Method (Smallest Balance First)
Focus extra payments on the debt with the smallest balance:
- • Provides quick psychological wins
- • Pay minimums on all debts
- • Put all extra money toward smallest balance
- • Once paid off, move to next smallest debt
- • Best for those who need motivation from progress
🎯 Which Method Should You Choose?
Consider these factors:
- • Large interest rate differences? Choose Avalanche to save more
- • Need motivation? Choose Snowball for quick wins
- • High-interest debt? Avalanche can save thousands
- • Similar rates? Either method works well
- • Past failures? Snowball's momentum helps many succeed
Tips for Successful Debt Payoff
Stop Creating New Debt
Cut up credit cards or freeze them in ice. You can't get out of a hole if you keep digging deeper. Focus all efforts on elimination, not accumulation.
Build a Small Emergency Fund First
Save $1,000-$2,000 before aggressively attacking debt. This prevents new debt when unexpected expenses arise.
Find Extra Money
Side hustles, selling unused items, cutting subscriptions, or reducing discretionary spending can accelerate payoff dramatically.
Track Your Progress
Create a visual tracker or spreadsheet. Watching balances decrease provides powerful motivation to keep going.
Common Debt Payoff Mistakes to Avoid
Paying Only Minimums
Minimum payments keep you in debt for decades. Always pay extra when possible.
Ignoring High Interest Rates
A 24% APR credit card costs you far more than a 5% car loan. Prioritize wisely.
No Emergency Fund
Without savings, one car repair puts you right back in debt.
Switching Methods Frequently
Pick a method and stick with it. Consistency matters more than perfection.
Frequently Asked Questions
Should I use the Avalanche or Snowball method?
The Avalanche method (highest interest first) saves more money mathematically, often thousands of dollars in interest. However, the Snowball method (smallest balance first) provides psychological wins that help many people stay motivated. If you have high-interest debt (above 15% APR), Avalanche usually makes more sense. If you struggle with motivation or have similar interest rates, Snowball can work better.
How much should I budget for debt payoff each month?
Start by ensuring you can cover all minimum payments, then allocate as much extra as possible without sacrificing essentials. A common approach is the 50/30/20 budget: 50% needs, 30% wants, 20% savings/debt. If you're in serious debt, consider temporarily reducing "wants" to 20% and putting 30% toward debt elimination. The more you can pay, the faster you'll be debt-free.
Should I stop saving for retirement while paying off debt?
It depends on your situation. If you have an employer 401k match, always contribute enough to get the full match (it's free money with 100% return). Beyond that, prioritize high-interest debt (above 7-8%) over additional retirement savings. For low-interest debt like mortgages or student loans, continue retirement contributions while making steady debt payments.
What if I can't afford the minimum payments?
Contact your creditors immediately. Many will work with you on temporary hardship programs, reduced interest rates, or modified payment plans. Consider credit counseling through a nonprofit agency (avoid for-profit debt settlement companies). You may also need to look at debt consolidation, balance transfers, or as a last resort, bankruptcy consultation with an attorney.
Should I use a balance transfer or debt consolidation loan?
Balance transfers to 0% APR cards can be excellent if you pay off the balance before the promotional period ends (typically 12-18 months). Watch for 3-5% transfer fees. Debt consolidation loans make sense if the new rate is significantly lower than your current average. Never consolidate unless you're committed to not creating new debt - otherwise you'll end up with both the loan and new credit card balances.
How can I stay motivated during debt payoff?
Track your progress visually with a chart or app. Celebrate milestones like paying off each debt or reaching $10k paid. Join online debt-free communities for support and accountability. Calculate your "debt-free date" and mark it on your calendar. Remember why you started - whether it's buying a home, retirement security, or just peace of mind. Small wins lead to big victories over time.
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