Debt Payoff Calculator FAQ

It shows how long it takes to pay off your debts and how much interest you save by adding extra payments or using the avalanche or snowball method.

The Complete Guide

Getting out of debt is partly math and partly psychology, and the two best-known strategies lean on each. The avalanche method saves the most money; the snowball method keeps you motivated with early wins. The calculator lets you compare both for your situation.

If you can stay disciplined, avalanche is mathematically superior — paying the highest-rate debt first always minimizes total interest. If you need momentum, snowball's quick payoffs can keep you on track, even if it costs a little more interest.

For aspiring homebuyers, debt payoff does double duty. It frees up cash flow and lowers your debt-to-income ratio, both of which improve your mortgage approval odds and the loan amount you can carry.

How the Calculator Works

The calculator applies your minimum payments plus any extra amount, directing the extra toward either the highest-rate debt (avalanche) or the smallest balance (snowball), and projects the payoff timeline and total interest for each approach.