Secure Finance

Debt Payoff Calculator

Compare the avalanche and snowball payoff methods across multiple debts. See your payoff date, total interest saved, and a month-by-month schedule. Free, no sign-up required.

Your Debts

Debt Name Balance ($) APR (%) Min. Payment ($)

Payoff Summary

Total Debt �?/span>
Total Interest �?/span>
Payoff In �?/span>

Payoff Order

DebtBalanceAPRPaid Off InInterest Paid
Calculate to see payoff order

How the Debt Payoff Calculator Works

Enter each debt with its balance, APR, and minimum payment. Add any extra monthly amount you can put toward debt. The calculator simulates month-by-month payoff using your chosen strategy, rolling freed-up payments to the next debt as each one is eliminated.

Avalanche vs. Snowball Method

MethodPriorityBest ForInterest Saved
AvalancheHighest APR firstMinimizing total costMaximum
SnowballLowest balance firstMotivation & quick winsLess than avalanche

Both methods use the same total monthly payment. The only difference is which debt gets the extra money. The avalanche method is mathematically optimal; the snowball method is psychologically powerful.

The Power of Extra Payments

Extra payments have a compounding effect: paying off one debt faster frees up its minimum payment, which then accelerates the next debt. Even $50�?100/month extra can cut years off your payoff timeline and save thousands in interest.

Should You Pay Off Debt or Invest?

  • Always: Contribute enough to your 401(k) to get the full employer match (it's a 50�?00% instant return).
  • High-rate debt (15%+): Pay off aggressively before investing further.
  • Mid-rate debt (6�?5%): Balance between payoff and investing based on your risk tolerance.
  • Low-rate debt (<6%): Consider investing the difference if you have a long time horizon.

Debt Payoff Calculator �?Frequently Asked Questions

What is the avalanche method?

Pay minimums on all debts, then put all extra money toward the highest-APR debt. Once it's paid off, roll that payment to the next highest rate. Mathematically optimal �?saves the most interest.

What is the snowball method?

Pay minimums on all debts, then put all extra money toward the smallest balance. Quick wins keep you motivated. Costs more in total interest than avalanche but works better for many people psychologically.

Which is better: avalanche or snowball?

Avalanche saves more money. Snowball provides faster motivation. Research shows snowball leads to better real-world completion rates for people who struggle with motivation. Try both in the calculator and compare.

How much extra should I pay each month?

Even $50�?100/month extra makes a dramatic difference. An extra $100/month on a $10,000 credit card at 20% APR can cut payoff time from 10+ years to under 4 years. Use the extra payment field above to see your exact impact.

Should I pay off debt or invest?

Always capture your full employer 401(k) match first. Then: pay off high-rate debt (15%+) before investing. For debt under 6%, investing may yield better long-term returns. For 6�?5%, it's a personal judgment call.

APR Calculator

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Mortgage Calculator

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Compound Interest Calculator

See how savings grow once debt is eliminated.

Educational purposes only. Not financial advice. Consult a licensed financial professional for personalized debt management guidance.