Debt Payoff Strategy Planner

Find the right strategy to pay off multiple debts most efficiently.

Your Debts

Debt Name	Balance	Interest (%)	Min. Payment

This calculator is for informational purposes only. Results are estimates and may differ from actual values.

How Do Debt Payoff Strategies Work?

Both strategies make minimum payments on all debts, but direct extra payments to different debt priorities.

Avalanche Method

Extra payments are directed to the debt with the highest interest rate. This method minimizes total interest cost and is the most mathematically efficient strategy.

Snowball Method

Extra payments are directed to the debt with the smallest balance. Debts are paid off quickly, providing psychological motivation. Popularized by Dave Ramsey.

How Does It Work?

Minimum payments are made on all debts.
Extra payment is directed to the priority debt based on the chosen strategy.
When a debt is paid off, its minimum payment is added to the next priority debt.
This process continues until all debts are paid off.

Info

The avalanche method starts with the highest interest debt and saves the most on interest. The snowball method starts with the smallest debt and provides motivation through quick wins. Avalanche is mathematically superior, but snowball may be more behaviorally sustainable.

Without extra payments, both strategies yield the same result — only minimum payments are made. The strategies determine which debt receives extra payment. The more extra you pay, the faster you become debt-free.

If you want to pay the least interest mathematically, choose avalanche. If you need motivation and want to see debts disappear quickly, choose snowball.