Debt Repayment Strategy Calculator
Take control of your financial future. This calculator compares the Debt Snowball (paying smallest balances first) and the Debt Avalanche (paying highest interest first) methods. Simply list your debts and your total monthly budget to see which strategy saves you the most time and money.
Your Debts
Calculation Analysis
Time to Freedom: 0 months
Total Interest: $0
Principal: $0
Total Paid: $0
How to Use the Debt Repayment Comparison Calculator
Managing multiple debts like credit cards, student loans, and car payments can be overwhelming. This tool helps you visualize your path to being debt-free using mathematically proven methods.
The Debt Avalanche Method
The Avalanche method focuses on the interest rate. By paying off the debt with the highest interest rate first, you minimize the total interest paid over time. This is the most cost-effective method mathematically.
The Debt Snowball Method
The Snowball method focuses on psychology. By paying off the smallest balance first, you gain "quick wins" that keep you motivated. While you may pay more in interest, many people find it easier to stick to this plan.
Why Comparing Strategies Matters
Every financial situation is unique. A high-interest credit card usually demands an Avalanche approach, while several small medical bills might be better handled via the Snowball method. Use this calculator to see the exact dollar difference between the two approaches.
Frequently Asked Questions
The Debt Avalanche method always saves the most money because it targets high-interest debt first, reducing the total interest accrued.
A minimum payment is the lowest amount you must pay each month to keep your account in good standing and avoid late fees.
Yes, you can use a custom strategy, but usually, it is most efficient to stick to one consistent logic to ensure your "extra" money is working as hard as possible.
Interest rates are entered as annual percentages (APR), but the calculator processes them as monthly compounding to reflect how most banks operate.
We recommend recalculating every time you pay off a debt or if your monthly budget changes.
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