Loading...
Loading...
Compare the avalanche and snowball methods for paying off US debt. Find the approach that minimizes total interest or maximizes motivation, and see your exact debt-free date.
Two popular structured payoff methods exist for tackling multiple debts with a fixed monthly budget. The avalanche method targets the highest-interest debt first while making minimum payments on all others. This mathematically minimizes total interest paid over time. The snowball method targets the smallest balance first regardless of rate, which can build psychological momentum by eliminating debts faster. Any payment above the combined minimum payments across all debts is called the extra payment or debt accelerator. Enter your total monthly payment budget and up to three debts with their balances, interest rates, and minimum payments to compare both strategies side by side.
A typical scenario using default values
{
"monthly_payment_budget": 500,
"debt_1_balance": 5000,
"debt_1_rate": 18,
"debt_1_min_payment": 100,
"debt_2_balance": 3000,
"debt_2_rate": 21,
"debt_2_min_payment": 60,
"debt_3_balance": 2000,
"debt_3_rate": 15,
"debt_3_min_payment": 40
}