Debt Payoff Calculator
Compare the Snowball vs. Avalanche method to find the best strategy for you.
Your Debts
Avalanche Method
You will be debt-free in:
Total interest paid:
✅ Saves the most money
Snowball Method
You will be debt-free in:
Total interest paid:
⭐ Quick psychological wins
💡 Useful Concepts
- Debt Avalanche: A method where you pay off debts starting with the highest interest rate first. This approach is mathematically optimal and saves you the most money in interest over time.
- Debt Snowball: A method where you pay off debts starting with the smallest balance first. This approach provides quick psychological wins, helping you stay motivated.
- Amortization: The process of paying off a debt over time through regular payments. This calculator creates an amortization schedule to show you how your payments reduce the principal balance month by month.
⭐ Practical Tips
- Increase Your "Extra Payment": The fastest way to get out of debt is to pay more than the minimum. Even an extra €50 per month can save you years of payments and significant interest.
- Consider Consolidation: If you have multiple high-interest debts (like credit cards), a debt consolidation loan with a lower interest rate could simplify your payments and save you money.
- Stop Creating New Debt: You can't get out of a hole if you keep digging. Pause using credit cards and avoid new loans while you focus on your payoff plan.