Debt Snowball & Avalanche Calculator

The debt snowball method involves paying off debts from smallest to largest balance, regardless of interest rate. You make minimum payments on all debts, then put any extra money toward the smallest debt. Once it's paid off, you roll that payment into the next smallest debt, creating a "snowball" effect.

Pros: Quick wins boost motivation, simpler to follow

Cons: May pay more interest overall

The debt avalanche method prioritizes debts with the highest interest rates first. You make minimum payments on all debts, then put extra money toward the debt with the highest rate. This minimizes the total interest paid over time.

Pros: Saves the most money on interest, faster mathematical payoff

Cons: May take longer to see first debt eliminated

Choose based on your personality and needs:

• Snowball: If you need motivation and quick wins to stay on track
• Avalanche: If you're disciplined and want to save the most money

Both methods work; the best one is the one you'll stick with. For a deeper decision framework with a worked example, see the snowball vs avalanche guide.

Any extra payment helps! Even $25-50 per month can significantly reduce your payoff time. Review your budget and find areas to cut:

• Cancel unused subscriptions
• Reduce dining out
• Take on a side gig
• Use tax refunds and bonuses

Financial experts recommend:

1. Save $1,000 for a starter emergency fund
2. Pay off all non-mortgage debt
3. Build 3-6 months of expenses in savings
4. Invest for retirement while paying off mortgage