debt payoff calculator snowball avalanche guide
How to use this debt payoff calculator: snowball vs avalanche
The debt snowball focuses on the smallest balance first for motivation. The debt avalanche focuses on the highest APR first to reduce interest. This calculator compares the tradeoff.
Steps
- Enter each debt balance, APR, and minimum payment.
- Add any extra monthly payment you can afford.
- Choose snowball or avalanche.
- Review estimated payoff time and total interest.
Calculation method
The calculator pays minimums on all debts and applies extra money to the selected priority debt. When one debt is paid off, its payment rolls to the next debt.
Example scenario
If your smallest debt has a low APR, snowball may feel better psychologically while avalanche may save more interest. The best strategy is the one you can stick with.
Tips for a better estimate
- Keep paying every minimum on time.
- Use avalanche to minimize interest mathematically.
- Use snowball if quick wins keep you motivated.