The Debt Payoff Calculator shows you exactly when you'll be debt free and how much interest you'll pay. Compare the avalanche method (highest interest first) and snowball method (smallest balance first) to find the fastest path out of debt.
Frequently Asked Questions
What is the debt avalanche method?
Pay minimum payments on all debts, then put all extra money toward the highest interest rate debt first. This saves the most money in interest.
What is the debt snowball method?
Pay minimum payments on all debts, then attack the smallest balance first. Once paid off, roll that payment to the next smallest. Psychologically motivating.
Which debt payoff method is better?
Avalanche saves more money. Snowball builds momentum and motivation. Studies show snowball works better for people who struggle to stay motivated.
Should I pay off debt or invest?
If your debt interest rate is higher than expected investment returns (roughly 7%), prioritise debt. Low-rate debt (under 4%) — consider investing while making minimum payments.