Debt Payoff Calculator
Create a debt payoff plan using the avalanche (highest interest first) or snowball (lowest balance first) method.
Your Debts
Payoff Order (Highest Interest First)
How Debt Payoff Strategies Work
Two popular strategies exist for paying off multiple debts: the Avalanche method (highest interest first) and the Snowball method (lowest balance first). Both work by focusing extra payments on one debt while maintaining minimums on others.
Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method prioritizes paying off debts with the highest interest rates first while making minimum payments on all other debts. This method saves the most money in total interest paid over time.
What is the debt snowball method?
The debt snowball method focuses on paying off the smallest balances first, regardless of interest rate. This provides quick psychological wins that can help maintain motivation, though it may cost more in total interest.
Which is better: snowball or avalanche?
The avalanche method saves more money mathematically. However, the snowball method has a higher success rate because quick wins provide motivation. Choose the method that you will stick with consistently.
Should I consolidate my debt?
Debt consolidation can simplify payments and potentially lower your interest rate. It works best when you can secure a lower rate than your average current rate and commit to not accumulating new debt.
Disclaimer
This calculator is for informational purposes only and should not be considered financial advice. Consult with a qualified financial professional before making any financial decisions.