Debt Payoff Calculator

The debt snowball method focuses on paying off your smallest debt first, regardless of interest rate. Once the smallest debt is paid off, you roll that payment into the next smallest. This method provides psychological wins that keep you motivated.

The debt avalanche method prioritizes paying off debts with the highest interest rates first. This approach minimizes the total interest you pay and is mathematically optimal, though it may take longer to see your first debt paid off.

The avalanche method saves more money on interest, but the snowball method may be better if you need motivation from quick wins. Choose snowball if you might give up without seeing progress; choose avalanche if you're focused on minimizing total cost.

Pay as much extra as you can while maintaining a small emergency fund ($1,000 is a common starting point). Even an extra $50-100 per month can significantly reduce your payoff timeline and total interest paid.

Build a small emergency fund first ($1,000), then focus on paying off high-interest debt aggressively. Once high-interest debt is gone, balance debt payoff with building a larger emergency fund (3-6 months expenses).