Debt Payoff Planner

The avalanche method pays minimum payments on all debts, then directs any extra money to the debt with the highest interest rate first. Once that's paid off, the freed-up payment rolls into the next highest-rate debt. This method minimises total interest paid and is mathematically optimal.

The snowball method targets the smallest balance first, regardless of interest rate. Each time a debt is eliminated, that payment amount rolls into the next smallest debt. This creates motivational wins early on and builds momentum — research suggests it may lead to better real-world follow-through.

The avalanche always saves more in total interest. However, the difference varies greatly — if your debts have similar rates or sizes, the difference may be small. The snowball's psychological benefit can sometimes outweigh the mathematical cost. Compare both methods with the tabs above and choose what works best for you.

Even $50–$100 extra per month can meaningfully shorten your payoff timeline. Use the Budget Calculator to find money you can redirect to debt, then come back here to see the impact. Generally, prioritise eliminating high-interest debt (especially credit cards above 15%) before saving or investing.