Compare the two most popular methods for paying off debt to see which saves you more money.
Choosing a payoff strategy is often a battle between math and psychology. The Avalanche Method (Highest Interest First) is mathematically superior because it minimizes the total interest you pay. The Snowball Method (Lowest Balance First) is psychologically superior because it gives you quick "wins" by eliminating small debts early, which keeps you motivated.
The most important field in this calculator is the "Extra Monthly Budget." Without paying extra on top of your minimums, neither strategy works. The key to becoming debt-free is finding an extra $50, $100, or $500 in your monthly budget to attack the principal balance.