Debt Payoff Calculator
Enter your debts — balance, APR, and minimum payment. See how long it takes to pay off using the avalanche method (highest APR first) vs the snowball method (lowest balance first), and how much interest each approach costs.
Amount you can pay above the minimums each month
Payoff comparison
Highest APR first
Lowest balance first
Track your debt payments alongside daily spending in Expenly. See every dollar going toward your payoff.
Download FreeAvalanche vs Snowball Method — Which Is Better?
Both methods work. The difference is mathematical vs psychological:
Avalanche method (highest APR first): Minimizes total interest paid. Mathematically optimal. Best for people who are motivated by numbers and can stay committed even when the first payoff takes a long time.
Snowball method (lowest balance first): Gets you quick wins by eliminating small debts first. Not always optimal mathematically, but the psychological momentum of crossing a debt off the list keeps many people on track. Research by Harvard Business Review found the snowball method leads to higher completion rates for most people.
The best method is the one you'll stick to. If the thought of grinding away at a high-balance, high-APR card for two years feels demotivating, snowball may serve you better — even if avalanche saves a bit more on paper.
How to Pay Off Debt on a Tight Budget
The key insight: even small extra payments make a significant difference when compounded over months. An extra $50/month on a $5,000 credit card at 22% APR cuts payoff time from 7+ years to about 3.5 years and saves over $2,000 in interest.
Where to find $50–100 extra: audit subscriptions (cut 1–2), reduce one dining-out meal per week, apply any windfalls (tax refunds, bonuses) directly to the target debt.
Should You Pay Off Debt or Save First?
The conventional guidance: if debt APR exceeds expected investment returns (roughly 7% for index funds), prioritize debt payoff. Credit card debt at 20%+ APR should almost always be paid before investing beyond a 401k employer match.
One exception: if you have no emergency fund, build a small one first ($1,000–2,000) before aggressive debt payoff. Without a buffer, any unexpected expense goes back on the credit card, creating a treadmill effect.
How to Track Debt Payments With an Expense App
Tracking every debt payment in an expense app makes the progress visible and keeps motivation high. Set up a dedicated "Debt Payments" category and log each payment as it happens. Watching that category total accumulate monthly — and knowing exactly how it maps to your payoff calculator — creates accountability that autopay alone doesn't.