Debt Payoff Optimizer

Enter your debts and a monthly extra payment. See how Avalanche, Snowball, your own custom order, and an even split compare — how much interest each saves and when you become debt-free.

Questions this answers — what you can actually figure out

Should I attack my highest-rate debt or smallest balance first?
How much sooner will I be debt-free paying $200 extra per month?
How much interest does Avalanche save versus Snowball for my debts?
What happens if I only ever pay the minimums on my cards?
Which payoff strategy will save me the most in total interest?
Why does splitting extra payments evenly across every debt lose?

Your debts

Balance, APR, minimum paymentFind these on your statements. APR is the yearly interest rate. The minimum payment is the required monthly amount — usually 1–3% of the balance for credit cards.

Drag to reorderThe order of these rows sets your Custom payoff order. Drag the handle to arrange them, then choose the Custom strategy below.

Extra payment

Extra monthly paymentThe amount you pay above all minimums combined. Even $50–100 extra compounds: once a debt is gone, its freed-up minimum rolls onto the next one.

The "debt roll" effectWhen a debt is paid off, its minimum is redirected to the next target the following month. This snowballing redirection is what makes modest extra payments shorten timelines so much.

Extra monthly payment (beyond minimums) $200/mo

Years to model (for the chart) 7 yrs

Custom order

Why a custom orderYour priorities may differ from Avalanche or Snowball — you might target a high-minimum debt to free up cash flow, or clear one that weighs on you emotionally.

How to use itDrag the debt rows above into the order you want, then pick the Custom strategy. This is a sequential payoff in the order you set — not a weighted split.

Drag the debt rows above to set your preferred payoff order.

Results summary

What the cards showEach card shows how long until you are debt-free and the total interest you would pay under that strategy. "Saves" compares against paying only the minimums.

Equal splitA naive baseline that spreads your extra payment evenly across every debt. It usually loses to targeted strategies — that contrast is the whole point.

Payoff sequence

Reading the orderThis is the order each strategy clears your debts, with the month each one is fully paid off. Switch strategies to compare sequences.

View

Avalanche

Snowball

Custom order

Equal split

Minimums only

Frequently asked questions

Avalanche puts every extra dollar against the highest-APR debt first, so the most expensive balance stops accruing interest as fast as possible. Snowball clears the smallest balance first regardless of its rate. When your highest-APR debt isn't your smallest, Snowball lets the worst rate keep working against you longer — that's the gap. The dollar difference grows with how much your APRs differ and how long the payoff takes.

Possibly yes. Snowball produces quicker first "wins" by clearing the smallest balance early, which keeps some people on the plan. If the interest difference is small (a few hundred dollars over the life of the plan) and the early-win effect matters to you, Snowball is a defensible choice. Behavior beats math if the math gets abandoned.

Start with whatever you can already pay above minimums without dipping into your emergency fund. If you don't have an emergency fund, build a small one first — paying down debt while one car repair away from new debt is fragile. $50–$200 a month is more common than people expect, and even that compounds noticeably once the debt roll kicks in.

That's negative amortization: the balance grows under minimums alone because the payment can't even cover interest. The calculator flags those debts in red. The "minimums only" projection becomes meaningless for them — raise the minimum so it covers interest plus a sliver of principal, or rely on the extra payment to make any forward progress.

Spreading $200 across five debts gives each $40 of extra payment. None gets cleared meaningfully faster, so interest keeps accruing across all of them. Targeting one debt clears it, then its freed-up minimum rolls onto the next debt alongside your extra payment. That cascading redistribution — the "debt roll" — is what makes a modest extra payment punch above its weight.

Depends on the APR gap. Paying off a 24% credit card is a guaranteed 24% return; few investments match that risk-free. For lower-rate debt (sub-6% student loans, a 3% mortgage), investing the difference often wins on expected value, but loses if markets are flat for a decade. The Pay Down Mortgage vs. Invest calculator handles that comparison directly — this tool focuses on the debt side in isolation.

Several things worth naming. Variable APRs (it assumes fixed rates throughout). Promotional 0% intro periods (model these as a separate debt and mentally cap the timeline). Late fees, over-limit fees, or rewards. Tax effects like the student loan interest deduction. Changes to your minimum payment over time (it holds at the value you enter). And it doesn't compare against investing the same money — for that, use a separate tool.

This calculator is for educational and informational purposes only. Results are estimates based on the inputs you provide and assume monthly compounding with fixed minimum payments held at the amounts you enter. Avalanche generally minimizes interest but is not guaranteed optimal in every discrete-payment case. Always consult a qualified professional for decisions involving debt, credit, or financial planning.

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