Debt Payoff Calculator

Avalanche saves more money mathematically — you eliminate high-APR debt first, which reduces the interest accruing fastest. Snowball is better for motivation: paying off small debts quickly delivers psychological wins. Research shows the snowball method works better for people who have struggled to stay on budget. This calculator shows both so you can decide what matters more.

A lot more than most people expect. On a $20,000 debt load at 18% APR, an extra $100/month can cut your payoff time by 2–3 years and save thousands in interest. Move the extra payment slider above to see the difference in real time for your specific debts.

If your debt APR is higher than your expected investment return, pay off debt first. Credit card debt at 20%+ APR is almost certainly worse than any investment. For lower-rate debt like a 5–6% mortgage or student loan, investing in a diversified fund may make mathematical sense. Most financial advisors split the difference: keep an emergency fund, get any employer 401k match, then attack high-interest debt aggressively.

Debt consolidation combines multiple debts into one loan at a lower interest rate. If you have high-APR credit card debt and qualify for a personal loan at 10–15%, consolidating can save significant interest and simplify your monthly payments to one. Use our Personal Loan Calculator to model what consolidation would look like.