Debt Payoff Calculator

Avalanche saves more money (you pay less total interest by eliminating high-APR debt first). Snowball is better for motivation — paying off small debts quickly gives you psychological wins that keep you going. Research shows snowball works better for people who've struggled to stay on budget in the past. This calculator shows you both side by side so you can decide.

More than most people think. 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. Try moving the "Extra Payment" slider above to $100 vs $200 vs $500 to see the difference in real time.

The math says: 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 6% mortgage or 5% student loan, investing in a diversified index fund often makes mathematical sense. For most people though, the psychological benefit of being debt-free is worth more than the spreadsheet says.

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