Debt payoff calculator

What is the difference between the snowball and avalanche methods?

The snowball method pays the smallest balance first, so you clear accounts quickly and keep momentum. The avalanche method pays the highest interest rate first, which costs less overall. This calculator runs both on your real numbers so you can see the gap in months and dollars.

Which debt payoff method is better?

Avalanche always costs less in interest, but only if you stick with it. If the first payoff is years away, the snowball often wins in practice because early wins keep people going. If the difference between the two is small, pick the one you will finish.

Should I keep an emergency fund while paying off debt?

Yes. Most households do better holding about one month of essential expenses in cash first. Without a cushion, the next car repair goes straight back onto the card you just paid down.

How is the payoff date calculated?

Each month interest is added at your annual rate divided by twelve, minimum payments are applied to every debt, and any extra payment goes to the target debt. When one debt clears, its payment rolls into the next one.

Does paying extra on debt hurt my credit?

No. Paying down balances usually lowers your credit utilization, which tends to help. Closing an old account after payoff can shorten your credit history, so many people keep the account open with no balance.