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FINANCE · DEBT

Debt paydown optimizer.

Compare avalanche versus snowball with psychological weighting and opportunity cost built in.

THE READ

Most advice picks one strategy. You just saw which one gets you out fastest — and what it costs to choose the one that feels better.

About the Debt Payoff Calculator

The Debt Payoff Calculator compares three strategies for eliminating debt: the avalanche method (highest interest first), the snowball method (smallest balance first), and a hybrid approach that balances mathematical optimization with psychological motivation. Enter all your debts with their balances, interest rates, and minimum payments to see a payoff timeline and total interest cost for each strategy.

Frequently Asked Questions

What is the debt avalanche method?▼
The debt avalanche method prioritizes paying off debts with the highest interest rate first while making minimum payments on all others. This approach minimizes total interest paid and is mathematically optimal, but it may take longer to fully pay off the first debt, which can reduce motivation.
What is the debt snowball method?▼
The debt snowball method prioritizes paying off the smallest balance first regardless of interest rate. When a small debt is paid off, its payment rolls into the next smallest debt, creating momentum. While it costs more in total interest, research shows people are more likely to stick with this approach due to the psychological wins of eliminating debts quickly.
Should I pay off debt or invest?▼
As a general rule, pay off debt with interest rates above 6-7% before investing (except for employer 401(k) matching, which you should always capture). For debt below 4-5%, investing may be better since long-term market returns historically exceed 8%. The 4-7% range is a personal decision based on your risk tolerance.

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NOT ADVICE

Educational model · not personalized advice · projected outcomes are uncertain.

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