Debt Payoff Plan Calculator
The Debt Payoff Plan Calculator compares the two classic debt-reduction strategies on your actual debts: the debt snowball (smallest balance first) and the debt avalanche (highest interest first), showing months and total interest for each.
What this means
Both methods keep your total monthly payments the same — as each debt is cleared, its payment rolls onto the next. Snowball focuses on small wins for motivation; avalanche minimizes total interest.
How we calculate it
Formula
Each strategy simulates month-by-month payments, rolling cleared balances' payments forward, and sums the months and interest until every debt is zero.Worked example
$2,000 at 20% ($100/mo), $5,000 at 8% ($200/mo) and $1,500 at 15% ($80/mo):
- 1Snowball orders by balance: $1,500 → $2,000 → $5,000
- 2Avalanche orders by rate: 20% → 15% → 8%
- 3Avalanche usually finishes sooner and pays less interest
Important assumptions
- You keep paying the same total each month and roll payments forward.
- Rates are fixed and no new debt is added.
- All debts are included in the plan.
Frequently asked questions
Which method should I choose?
Avalanche saves the most money; snowball builds momentum. Pick the one you'll stick with — the best plan is the one you follow consistently.
Should I stop contributing to savings while paying debt?
Keep a small emergency fund, then focus extra cash on high-interest debt. The interest savings usually beat what that money would earn in a savings account.