Debt Payoff Calculator

The avalanche method targets the highest-interest debt first, minimizing total interest paid. The snowball method targets the smallest balance first, providing quick wins to maintain motivation. Avalanche is mathematically optimal - usually saving hundreds to thousands in interest - but snowball has stronger behavioral evidence for actual completion. Pick whichever you'll stick with.

Even modest extra payments compound powerfully. On $20,000 of credit card debt at 22% APR with $500/month payments, payoff takes about 60 months and costs $9,800 in interest. Adding just $100/month cuts that to about 47 months and $7,400 in interest - saving $2,400 with about $4,700 in extra payments.

Capture any 401(k) employer match first - it's a guaranteed 50%–100% return that beats any debt rate. Beyond that, prioritize high-interest debt (credit cards above ~8%) over additional retirement savings. For low-interest debt (mortgages, federal student loans below 5%), most experts recommend balancing payoff with continued investing.

Consolidation can simplify payments and lower the rate if you qualify for a personal loan or HELOC at a meaningfully lower APR than your current debts. The risk is that without changing spending habits, freed-up credit cards get re-charged, leaving you with the consolidation loan plus new card balances. Only consolidate as part of a written plan to stay debt-free.