Debt Payoff Calculator: Snowball vs. Avalanche - Plan Your Debt-Free Journey

Debt Payoff Calculator

Compare the Snowball and Avalanche methods to find your fastest path out of debt.

Debt Snowball: Focuses on paying off the smallest debts first to build momentum.

Debt Avalanche: Focuses on paying off the highest-interest debts first to save the most money.

Select Currency

USD ($) EUR (€) GBP (£) INR (₹)

Your Debts

Extra Payment

Debt Snowball Results

Motivation Meter:

0%

Debt Avalanche Results

User Manual

Purpose

The Debt Payoff Calculator helps you compare two popular debt repayment strategies: the Debt Snowball and Debt Avalanche methods. By entering your debt details and extra monthly payment, you can see which method gets you debt-free faster and how much interest you'll pay.

How to Use

1. Select Currency: Choose your preferred currency (USD, EUR, GBP, or INR) from the dropdown. This updates the currency symbols in the calculator.
2. Add Your Debts: Use the "Your Debts" section to input each debt. For each debt, provide:
   • Debt Name: A label for the debt (e.g., "Credit Card").
   • Balance: The current amount owed.
   • APR (%): The annual percentage rate (interest rate).
   • Minimum Payment: The minimum monthly payment required.
3. Add More Debts: Click "Add Another Debt" to include additional debts. Remove any debt by clicking the "Remove" button next to it.
4. Enter Extra Payment: In the "Extra Payment" section, input any additional amount you can pay monthly toward your debts.
5. Calculate: Click the "Calculate" button to run the simulation for both Snowball and Avalanche methods.
6. View Results: The results section will display:
   • Total Interest Paid: The total interest accrued over the payoff period.
   • Debt-Free Date: The month and year you'll be debt-free.
   • Payoff Timeline: A step-by-step list showing when each debt is paid off.
   • Motivation Meter (Snowball only): A progress bar showing the percentage of debts paid off, with a message to keep you motivated.
7. Reset: Click the "Reset" button to clear all inputs and start over.

About the Methods

Debt Snowball: This method prioritizes paying off debts with the smallest balances first, regardless of interest rate. As each debt is paid off, the minimum payment from that debt is added to your extra payment, creating a "snowball" effect. The Motivation Meter visually tracks your progress, celebrating each debt cleared to boost momentum.

Debt Avalanche: This method targets debts with the highest interest rates first, minimizing total interest paid over time. It’s the most cost-effective approach but may take longer to feel progress if high-interest debts have large balances.

Tips

• Ensure all inputs are positive numbers to avoid errors.
• If the calculator indicates that debts cannot be paid off, check that your minimum payments and extra payment are sufficient to cover interest and reduce balances.
• Use the Snowball method for motivation if small wins keep you going, or choose Avalanche to save on interest if cost is your priority.