About the Debt Payoff Calculator
Choosing how to pay off multiple debts is as much a psychological decision as a mathematical one. The debt avalanche method minimizes total interest paid by targeting the highest-interest-rate debt first, while the debt snowball method builds momentum and motivation by eliminating the smallest balances first, regardless of interest rate.
This calculator simulates a month-by-month payoff schedule for both strategies given your debts, their balances, interest rates, and your available monthly budget, then reports the estimated payoff timeline and total interest paid under your chosen approach.
Frequently Asked Questions
Which method is mathematically better?
The avalanche method almost always results in less total interest paid, since it eliminates the highest-cost debt first. The snowball method can still be the better real-world choice for people who need small, frequent wins to stay motivated.
What counts as a minimum payment in this calculator?
The simulation assumes a minimum payment of 2% of the balance or $25, whichever is greater, on every debt, then applies remaining budget to the priority debt — check your actual statements, since real minimums vary by lender.
Should I include my mortgage in this calculator?
Generally no — this tool is best suited for revolving and installment consumer debt like credit cards, personal loans, and auto loans, which usually carry higher rates than a mortgage.