Debt Payoff Calculator

Mathematically, the Avalanche method (highest interest rate first) saves the most money. The Snowball method (smallest balance first) provides faster psychological wins that help some people stay motivated. Studies show people who use the Snowball method are more likely to stick with their plan. Choose whichever keeps you committed.

It depends on your balances and interest rates, but the impact is often dramatic. On $10,000 of credit card debt at 20% APR with $200 minimum payments, adding just $100/month extra cuts payoff time from 9 years to under 4 years and saves over $4,000 in interest. The earlier in the payoff process you add extra payments, the more you save.

A common guideline: always capture your full 401(k) employer match first (free money). Then pay off high-interest debt (>8–10% APR) before investing further. Low-interest debt (<5–6% APR) can often be held while investing, since historical stock market returns (~7–10%) may exceed your interest cost. Credit card debt at 20%+ should almost always be paid off before investing beyond the employer match.