Calculate how quickly you can pay off debt. See the impact of extra payments and compare avalanche vs snowball strategies.
Calculate how quickly you can pay off debt. See the impact of extra payments and compare avalanche vs snowball strategies.
The average American household carries $7,951 in credit card debt at ~20% APR. At minimum payments, that takes 19 years and costs $11,000+ in interest. Adding just $100/month cuts it to 3 years and saves $8,000.
Avalanche: Pay highest-interest debt first. Saves the most money. Snowball: Pay smallest balance first. Gives quick wins for motivation. Mathematically, avalanche always wins — but the best strategy is the one you stick with.
We use the compound interest formula: A = P(1 + r/n)^(nt), where P is principal, r is the annual rate, n is compounding frequency, and t is time in years. For retirement projections, we factor in inflation-adjusted returns using historical S&P 500 data from NYU Stern.
Past performance does not guarantee future results. Actual investment returns vary based on market conditions, fees, and asset allocation. Consult a licensed financial advisor for personalized planning.