Compare Debt Avalanche (highest interest first) versus Debt Snowball (smallest balance first). See exact payoff dates, interest savings, and debt-free timelines.
Enter your values, then select Calculate Now
Calculates loan payoff amortization under standard minimum payment versus accelerated payment (Minimum + Extra). Computes total months to payoff using exact logarithmic amortization: n = -ln(1 - r*P/PMT) / ln(1+r), total interest paid under each scenario, and net interest saved.
Adding $250/month eliminates debt 2.4 years sooner and prevents more than $6,000 from being handed to banks in interest charges.
Combine all non-mortgage debt balances into total balance.
Input the average weighted APR across those loans.
Enter your current required minimum monthly payment.
Add an extra monthly payment amount you can afford to pay toward principal.
Review the months saved, interest saved, and exact debt-free celebration date.
Debt Snowball pays off smallest balances first for quick psychological motivation. Debt Avalanche pays highest interest rates first to mathematically minimize total interest paid.
Avalanche saves the most money mathematically. However, behavioral research shows Snowball has a higher completion rate because early quick wins motivate people to stick with the plan.
This is the "minimum payment trap." Credit card companies design minimums to keep you in debt for 15-25 years. Even an extra $50 to $100 per month breaks the cycle.
If you qualify for a personal consolidation loan with an APR significantly lower than your current credit card rates (e.g. 10% vs 24%), it can save thousands, provided you do not run up new card debt.
Keep a starter emergency fund ($1,000 to $2,000) so minor life bumps do not force you back onto credit cards. Direct all remaining free cash flow toward debt payoff.
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