Debt Payoff Calculator

The debt snowball method pays off debts from smallest balance to largest, regardless of interest rate. After paying off the smallest debt, you roll that payment into the next smallest. The psychological wins of eliminating debts quickly help maintain motivation.

The debt avalanche method targets the highest-interest debt first, then moves to the next highest. This approach minimizes total interest paid and is mathematically optimal, but the first payoff may take longer, which can reduce motivation for some people.

The avalanche method saves more money on interest, while the snowball method provides faster emotional wins. Research from Harvard Business School suggests the snowball method leads to higher success rates because people stay motivated. The best method is the one you will stick with.