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Calculate how long it will take to pay off a debt and how much interest you'll pay in total.
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Total Interest Paid
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Each month, interest accrues on the remaining balance at the monthly rate (annual rate divided by 12), then your fixed payment reduces the balance. Repeating this until the balance reaches zero gives the total months and total interest paid.
New Balance = (Balance × (1 + Monthly Rate)) − Payment, repeated monthly
The debt snowball method directs extra payments toward the debt with the smallest balance first, while making minimum payments on everything else, then rolls that payment into the next-smallest debt once it's paid off. The strategy is built around psychological momentum: eliminating individual debts quickly creates visible progress that helps people stick with a payoff plan.
The debt avalanche method directs extra payments toward the debt with the highest interest rate first, regardless of balance size, which mathematically minimizes the total interest paid across all debts. It's the more cost-efficient method, though it can take longer to see an individual debt fully eliminated if the highest-rate debt also has a large balance.
If you're confident in your ability to stick with a plan based on the numbers alone, debt avalanche saves more money. If you've struggled to stay motivated with debt payoff in the past, debt snowball's early wins may make you more likely to complete the full payoff plan, even though it can cost somewhat more in total interest. Both methods work if you can maintain payments consistently; the more important variable is consistency, not the specific method.
Any extra amount paid above the minimum, whether from a windfall, a raise, or cutting an expense, directly reduces principal and shortens payoff time disproportionately, since it also reduces the interest that would have accrued on that principal in future months. Even modest extra payments compound into meaningfully faster payoff timelines.
The debt snowball method pays off debts from smallest to largest balance first for psychological momentum, while the debt avalanche method pays off debts from highest to lowest interest rate first to minimize total interest paid.
Debt avalanche saves more money in total interest since it targets the highest-rate debt first. Debt snowball can be more effective for some people because quick wins from clearing small balances build motivation to stick with the plan.
Payoff time is calculated by simulating monthly payments against the balance: each month, interest accrues on the remaining balance, then the payment is applied, reducing the balance until it reaches zero.
Check your credit utilization with the Credit Utilization Calculator, or build a buffer with the Emergency Fund Calculator.
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