π³ Debt Payoff Calculator
List your debts, set what you can pay each month, and compare the snowball and avalanche methods side by side.
Debt Payoff FAQ
Snowball vs avalanche β which is better?
Mathematically the avalanche method wins: paying the highest interest rate first always costs the least total interest. But studies of real borrowers consistently find the snowball method (smallest balance first) gets more people to actually finish, because clearing a whole account early delivers a psychological win. If the two methods land within a month or two of each other for you, pick the one you will stick with.
How is minimum payment calculated on a credit card?
Most US issuers charge either a flat percentage of the balance (commonly 1β3%) or a fixed dollar amount (often $25β$35), whichever is greater, plus that month's interest. Because the percentage shrinks as the balance falls, minimum-only payments stretch a card out for decades β this calculator assumes you keep paying the same fixed total each month instead.
How much does an extra $100 a month actually save?
More than most people expect, because extra money hits principal and every dollar of principal removed also removes all future interest on it. Try your real numbers above, then raise the monthly payment by 100 and compare the interest total β the gap is your saving.
Should I pay off debt or invest first?
Compare the interest rate on the debt with the return you expect from investing. Paying off a 22% credit card is a guaranteed, tax-free 22% return, which no realistic portfolio beats. Low-rate fixed debt such as a 3% mortgage is a different question β many people invest while paying that off slowly.
Does paying off debt hurt my credit score?
Closing accounts can trim your available credit and slightly raise your utilization ratio, but paying balances down sharply lowers utilization β the second biggest scoring factor β so the net effect of paying off debt is normally positive. Paying on time matters most of all.
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