Debt Payoff Calculator
Calculate how long it takes to pay off any debt and compare avalanche vs snowball strategies.
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US Debt Statistics (2026)
Source: Federal Reserve (2026)
Frequently Asked Questions
What is the debt avalanche method?
Pay minimums on all debts, then put every extra dollar toward the highest interest rate debt first. Once that is paid off, roll that payment to the next highest rate. This method saves the most money in interest over time and is mathematically optimal. Best for people who are motivated by numbers and long-term savings.
What is the debt snowball method?
Pay minimums on all debts, then attack the smallest balance first regardless of interest rate. Each payoff gives a psychological win and frees up cash flow. Research shows snowball users pay off debt faster in practice because the motivation keeps them going. Best for people who need early wins to stay on track.
How much extra should I pay toward debt each month?
Even an extra $50-$100/month makes a dramatic difference. On a $25,000 debt at 18% APR with $600 minimum payments, an extra $200/month cuts payoff time from 5.5 years to 3.6 years and saves over $5,500 in interest. Use any windfalls (tax refunds, bonuses) as lump-sum extra payments for maximum impact.
Three debts, $800 a month: avalanche against snowball
The example: Card A $6,000 at 24%, Card B $2,500 at 19%, a car loan of $9,000 at 7% with a $272 minimum. Total $17,500. The household pays $800 a month in total. The avalanche sends every spare dollar to the highest rate first; the snowball sends it to the smallest balance first.
| Method | Order | Debt-free in | Total interest | Difference |
|---|---|---|---|---|
| Avalanche (highest rate first) | Card A, Card B, Car | 26 months | $2,531 | Saves $129 |
| Snowball (smallest balance first) | Card B, Card A, Car | 26 months | $2,660 | First debt gone in month 4 |
| Minimums only | 21 years for Card A | About $10,900 on Card A alone |
Both methods finish in the same month here because the $800 budget is the same; the order only changes which debt disappears first and how much interest accrues along the way.
Why the difference is small and the budget is everything
The avalanche is mathematically optimal, but with balances and rates in this range it saves $129 over the snowball, about $5 a month. Raising the budget from $800 to $900 saves about $400 and 4 months, three times the effect of the method. Pick the method you will stick with: people who need the early win of clearing Card B in month four often stay on plan longer, and staying on plan is worth more than $129.
Worked example, first month of the avalanche
Minimums: Card A $180 (1% of the balance plus the month's interest), Card B $65, car $272, total $517. The remaining $283 goes to Card A. Card A interest that month is $120 (6,000 x 24% / 12), so its balance drops by $343 to $5,657. Card B pays $65 against $40 of interest and falls to $2,475. Month two, Card A's minimum is slightly lower and the extra slightly higher. By month 12 Card A is under $2,000 and the extra is close to $400 a month.
When to break the rules
A balance transfer at 0% for 18 months with a 3% fee on Card A ($180) cuts total interest from about $2,500 to under $700 if the balance is cleared within the promotion; after the transfer, that card drops to the bottom of the avalanche order until the promotion ends. A debt with a cosigner, or a tax debt or a payday loan with escalating fees, jumps the queue regardless of rate. And the car loan at 7% is usually left at its minimum once the cards are gone, with the freed $800 going to savings or investing, since 7% is below the long run return on a diversified portfolio.
What to do the month it ends
Keep the $800 habit. Redirected into a savings account for three months it rebuilds the emergency fund that keeps the cards from refilling; after that, into a retirement account. Households that finish a payoff plan and then absorb the $800 back into spending are back where they started within two years far more often than not.