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How Much Do You Know About Paying Off Debt?
Ten questions on interest, strategies and payoff order.
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Debt Payoff Optimizer
Enter your debts and an extra monthly payment to compare Avalanche, Snowball, your own order and an even split: payoff date and total interest.
Questions this answers
- 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.
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.
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.
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.
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Avalanche
Snowball
Custom order
Equal split
Minimums only
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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Frequently asked questions
Why does Avalanche save more interest than Snowball at my numbers?
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.
Should I use Snowball anyway for motivation?
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.
What's a realistic extra payment for me to model?
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.
What if my minimum payment is below my monthly interest?
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.
Why does Equal Split lose to targeted strategies?
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.
Should I pay down debt or invest the extra instead?
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.
What does this calculator NOT include?
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.
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