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Debt Payoff Comparison Calculator

What This Calculator Does

The debt payoff comparison calculator eliminates guesswork by showing you exactly how three popular repayment strategies stack up against each other. Enter your debts once, and see side-by-side results for the debt snowball method (smallest balance first), the debt avalanche method (highest interest first), and a fixed-payment approach. This comparison reveals the trade-offs between psychological momentum and mathematical efficiency, helping you choose the strategy that fits your priorities and discipline style.

Why Payoff Methods Produce Different Results

Not all debt payoff strategies are created equal. While they all aim to eliminate debt, they prioritize different factors—and those differences directly impact how much interest you pay and how quickly you see progress.

The fundamental trade-off: Strategies that minimize interest costs mathematically (like the avalanche method) often take longer to eliminate your first debt compared to strategies that prioritize quick wins (like the snowball method). Meanwhile, approaches that distribute payments evenly without prioritization tend to fall somewhere in the middle—or worse—on both metrics.

Understanding why these methods differ helps you choose based on your personal priorities: Do you need early momentum to stay motivated? Are you disciplined enough to stick with a plan that takes longer to show visible progress but saves more money? Or do you prefer a middle-ground approach that balances both?

Debt Snowball

Prioritizes smallest balances first to create psychological momentum through quick wins. Best for people who need visible progress to stay motivated.

Debt Avalanche

Prioritizes highest interest rates first to minimize total cost mathematically. Best for disciplined individuals focused on long-term savings.

Fixed Payment

No strategic prioritization—payments are distributed without optimization. Often used as a baseline comparison to show the value of strategic repayment.

Compare Your Debt Payoff Options

Add Your Debts

Enter each debt separately. We'll compare how different payoff methods handle your specific situation.

Debt 1

Must be at least equal to the sum of all minimum payments

How We Calculate & Compare+

Calculation Method:

Each method uses the same debt data and monthly payment amount, but applies a different prioritization strategy:

  1. Debt Snowball: Debts are sorted by balance from smallest to largest. Extra payments target the smallest debt first.
  2. Debt Avalanche: Debts are sorted by APR from highest to lowest. Extra payments target the highest-interest debt first.
  3. Fixed Payment: Debts are processed in the order entered with no strategic prioritization (baseline comparison).

For each method:

  1. Minimum payments are applied to all debts each month
  2. Interest accrues monthly: (balance × APR) ÷ 12
  3. Remaining funds are applied to the target debt per that method's strategy
  4. When a debt reaches $0, its payment rolls forward to the next target debt
  5. Process continues until all balances reach zero

Estimates and Limitations: All results are estimates assuming consistent monthly payments and stable interest rates. Actual outcomes may vary due to APR changes, late fees, new purchases, or changes in payment capacity.

Explore Individual Payoff Strategies

Now that you've compared methods side-by-side, dive deeper into the specifics of each approach or explore alternative debt solutions.

Debt Snowball Calculator

Detailed snowball calculator with full payoff timeline and order

Debt Avalanche Calculator

Detailed avalanche calculator showing APR-optimized payoff plan

Credit Card Payoff Calculator

Calculate payoff timeline for credit card debt with different payment amounts

Debt-Free Date Calculator

Find out exactly when you'll be debt-free with your current payment plan

Debt Consolidation Calculator

See potential savings from consolidating multiple debts into one lower-rate loan

Debt Relief Calculator

Estimate potential savings through debt settlement and relief programs

How the Comparison Calculator Works

This calculator runs three parallel simulations on the same debt portfolio: snowball (smallest balance first), avalanche (highest APR first), and fixed-allocation (equal extra payment distributed proportionally). It tracks months to payoff, total interest, order of debt elimination, and first-win date for each method.

All three methods share the same total monthly budget. The only variable is which debt receives the extra payment beyond minimums. By keeping everything else constant, the tool isolates the impact of prioritisation strategy on cost and timeline.

Results are displayed side-by-side so you can see exact dollar and month differences. In many cases the gap between methods is surprisingly small—under $500—which means the "best" method is whichever one you will actually follow through. In other cases, particularly when APR spreads are large, avalanche can save thousands, making the mathematical choice clear.

Common Mistakes When Comparing Payoff Methods

Choosing on principle instead of numbers. Many people commit to "avalanche because it's mathematically optimal" without checking their specific gap. If avalanche saves $150 over snowball but you need early wins to stay motivated, the $150 is a small price for completion. Let the numbers decide, not ideology.

Ignoring the first-win timeline. The comparison shows when each method eliminates its first debt. If avalanche's first win is 20 months away while snowball's is 4 months away, that 16-month motivation gap matters for most people.

Assuming the comparison is static. Life changes—raises, job loss, windfalls, new debt—shift the optimal method. Re-run the comparison after major financial changes. A method that was ideal six months ago may no longer be best.

Overlooking the fixed-allocation method. The third column often goes ignored. Fixed allocation spreads extra payments across all debts proportionally. It rarely wins on cost or speed, but it reduces all balances simultaneously, which can improve credit utilisation faster than targeting one debt at a time.

Payoff Comparison Worked Examples

Example 1 — Three debts, clear APR spread. Card A: $1,000 at 12%. Card B: $4,000 at 24%. Card C: $6,000 at 18%. Budget: $500/month. Avalanche targets Card B first—total interest roughly $3,100, payoff 29 months. Snowball targets Card A first—total interest roughly $3,600, payoff 30 months. Gap: $500 and 1 month. Avalanche clearly better here, and the gap is large enough to favour it even if you need motivation.

Example 2 — Similar rates, different balances. Loan A: $2,000 at 17%. Loan B: $7,000 at 18%. Loan C: $3,500 at 16%. Budget: $450/month. Avalanche targets Loan B (18%). Snowball targets Loan A (smallest). Total interest difference: about $180. With rates this close, the cost gap is negligible—choose based on personality, not math.

Example 3 — One tiny debt dominates the decision. Card A: $400 at 15%. Card B: $9,000 at 22%. Budget: $350/month. Snowball clears the $400 card in month 2 and then all extra goes to Card B. Avalanche targets Card B from the start. Snowball's 2-month "detour" costs roughly $30 more in interest but gives an immediate psychological win. For most people, the $30 is worth it.

Educational tool only — not financial advice. Examples use hypothetical numbers for illustration. Actual results depend on your specific balances, rates, and payment consistency. Consult a qualified financial professional for personalized guidance.