Debt payoff calculator

Avalanche, targeting the highest interest rate first, always saves the most money. Snowball, clearing the smallest balance first, eliminates whole debts faster, which many people find easier to sustain. The budget is identical either way, so the best method is the one you will actually stick with.

Compare the guaranteed return. Clearing a card at 20% APR is a guaranteed 20% return, which no investment reliably matches. Below roughly 6%, as with most mortgages and some car loans, investing usually wins, though the certainty of debt repayment has real value of its own.

Because the minimum shrinks as the balance falls, so the payoff date keeps receding. Paying a fixed amount instead, even the same amount you are paying today, is usually the single biggest lever available and can cut years off the timeline.

Usually, mainly through credit utilization, the share of your available credit you are using. Getting utilization below about 30% typically helps. Keeping a paid-off card open rather than closing it preserves both your available credit and your account history.