❄️ Debt Payoff Strategy Calculator ๐️
Compare the Snowball and Avalanche methods to find your optimal debt repayment strategy
๐ Your Debts
๐ฐ Payment Information
Total amount you can pay toward debts each month
Additional amount to apply to your target debt
❄️ Snowball Method
Payoff Time:
Total Interest Paid:
Payoff Order:
๐️ Avalanche Method
Payoff Time:
Total Interest Paid:
Payoff Order:
๐ Strategy Comparison
Time Difference:
Interest Difference:
๐ Our Recommendation
๐ก Key Considerations
- Snowball Method: Pays debts from smallest to largest balance. Provides quick wins that motivate many people to continue.
- Avalanche Method: Pays debts from highest to lowest interest rate. Mathematically saves the most money.
- Behavioral Factors: Choose Snowball if you need motivation, Avalanche if you're strictly focused on financial efficiency.
๐ About These Debt Payoff Methods
❄️ Debt Snowball Method
Pay off debts in order of smallest to largest balance, regardless of interest rate. After paying off the smallest debt, you roll that payment amount into paying off the next smallest debt.
Pros:
- Quick psychological wins keep you motivated
- Simplifies your debt picture faster
- Works well for people who need visible progress
Cons:
- May pay more interest overall
๐️ Debt Avalanche Method
Pay off debts in order of highest to lowest interest rate, regardless of balance. After paying off the highest-interest debt, you roll that payment amount into paying off the next highest-interest debt.
Pros:
- Saves the most money on interest
- Pays off debt fastest in most cases
- Most mathematically efficient approach
Cons:
- May take longer to see first debt paid off
๐ How to Use This Calculator
- List all your debts - Include credit cards, personal loans, medical bills, etc.
- Enter accurate balances and interest rates - Find these on your statements
- Input your total monthly debt payment - How much you can pay toward all debts combined
- Add any extra payment - Additional funds you can apply to your target debt
- Compare the results - See which method saves you more time and money
