Debt Payoff Calculator
Compare the avalanche and snowball debt payoff methods to find the best strategy for becoming debt-free. See exactly how much you'll save and how quickly you can eliminate your debts.
Additional amount you can pay beyond minimum payments
Total Debt
$8,000
Total Minimum Payment
$240
Total Monthly Payment
$440
Number of debts: 2
Understanding Debt Payoff Strategies
When you have multiple debts, the order in which you pay them off can significantly impact how much interest you pay and how quickly you become debt-free. The two most popular strategies are the avalanche and snowball methods.
Avalanche vs Snowball Method
Avalanche Method
Pay off debts in order of highest to lowest interest rate
Pros:
- •Saves the most money on interest
- •Mathematically optimal approach
- •Often faster payoff timeline
Cons:
- •May take longer to see first debt eliminated
- •Requires more discipline and patience
⚡Snowball Method
Pay off debts in order of smallest to largest balance
Pros:
- •Quick wins build motivation
- •Psychological boost from eliminating debts
- •Easier to stick with long-term
Cons:
- •May pay more in total interest
- •Not mathematically optimal
Tips for Successful Debt Payoff
- 1.Make a budget: Track your income and expenses to find extra money for debt payoff
- 2.Stop adding new debt: Avoid using credit cards while paying off existing balances
- 3.Build an emergency fund: Save $1,000-$2,000 to avoid new debt from unexpected expenses
- 4.Consider balance transfers: Move high-interest debt to 0% APR cards if available
- 5.Increase income: Side hustles or overtime can accelerate your debt payoff timeline
Which Method Should You Choose?
The best method depends on your personality and situation:
Choose Avalanche if: You're motivated by numbers and want to save the most money, even if it takes longer to see your first debt eliminated.
Choose Snowball if: You need quick wins to stay motivated and the psychological boost of eliminating debts is important to you.
Pro tip: The best method is the one you'll actually stick with. If the snowball method keeps you motivated to continue, the small amount of extra interest may be worth it.