Debt Payoff Planner
Decide where to put your extra payments. Compare snowball vs avalanche strategies to pay off debt faster and save on interest.
Your Debts
| Name | Balance | APR % | Min Payment |
|---|
No debts added yet. Click "Add Debt" to get started.
Extra Monthly Payment
How much extra can you pay each month beyond minimums?
Add debts and click Calculate
to see your payoff comparison
Snowball Method
Pay smallest balance first
Debt-free in
-- months
Total interest
$--
Avalanche Method
BestPay highest rate first
Debt-free in
-- months
Total interest
$--
Debt Payoff
This calculator helps you decide where to direct your extra payments to pay off debt faster. When you have money beyond the minimums, snowball and avalanche strategies tell you which debt to target first. Without extra payments, both methods produce identical results since each debt just receives its minimum.
How to Use
- 1 Enter each debt with its current balance, interest rate (APR), and minimum monthly payment.
- 2 Add any extra amount you can pay monthly beyond the minimums.
- 3 Click "Calculate" to compare the Snowball and Avalanche methods.
- 4 Review the results to see which strategy saves you more money and time.
FAQ
What is the Snowball method?
The Snowball method focuses on paying off your smallest debt first while making minimum payments on others. Once the smallest is paid off, you "roll" that payment into the next smallest. This creates psychological wins that keep you motivated.
What is the Avalanche method?
The Avalanche method prioritizes paying off the debt with the highest interest rate first. This is mathematically optimal and saves you the most money in interest over time, though it may take longer to see your first debt completely paid off.
Which method should I choose?
If you're motivated by quick wins and need the psychological boost of eliminating debts quickly, choose Snowball. If you want to minimize total interest paid and are disciplined enough to stay the course, choose Avalanche. The best method is the one you'll stick with.
How does extra payment help?
Extra payments beyond the minimums are applied to your focus debt (smallest or highest-rate, depending on strategy). This accelerates payoff dramatically because more of your payment goes to principal instead of interest.
Should I include my mortgage?
Generally, no. Mortgages have much lower interest rates than consumer debt and are considered "good debt." Focus on high-interest debts first. However, if you're debt-free except for your mortgage and want to pay it off early, you can include it.
What if I can't pay extra every month?
Set the extra payment to $0 to see your baseline payoff timeline. Any extra you can pay—even occasionally—will help. The calculator assumes consistent payments, but irregular extra payments still reduce interest over time.
Should I pay off debt or save first?
Most experts recommend having a small emergency fund ($1,000-$2,000) before aggressively paying debt. This prevents new debt when unexpected expenses arise. After that, focus on high-interest debt before building larger savings.
Calculator Limitations
This calculator provides estimates based on fixed interest rates and consistent payments. Actual results may vary due to variable rates, fees, payment timing, and promotional periods. Always verify with your lender for exact payoff amounts.
