Debt payoff
calculator.

How the two methods work

Both methods start the same way: keep making the minimum payment on every debt, then put any extra money toward one debt at a time. The CFPB describes the difference:

• Snowball: “This approach focuses on your smallest debt. The goal is to get rid it as soon as possible.” The CFPB adds that you see progress quickly as you pay off smaller debts.
• Highest interest rate: “The goal is to pay off the highest interest rate debt as quickly as possible, because it’s costing you the most.”

Source: CFPB, How to reduce your debt (published July 16, 2019).

What this calculator assumes

• Interest is added once a month at one-twelfth of the APR on the balance you carry. The CFPB says many credit card companies calculate interest daily (source), so real results will differ.
• You make every payment on time and add no new charges.
• Your total monthly payment is fixed at the sum of the minimums you enter plus any extra, so the minimum of a paid-off debt rolls into the next one. The minimums-only column assumes each minimum stays the same, though the minimum on a real card may change as the balance changes.
• Fees, changing rates and promotional rates are not modeled.

This is an estimate for planning, not financial advice. For free one-on-one help, see the Dallas Financial Empowerment Center. If a collector is contacting you, read what to do first.