Debt Payoff Calculators

The avalanche method prioritizes paying off the debt with the highest interest rate first while making minimum payments on all other debts. Once the highest-rate debt is paid off you roll that payment to the next highest rate. This method minimizes total interest paid and is mathematically optimal — but requires patience since high-rate debts are often also large balances.

The snowball method prioritizes paying off the smallest balance first regardless of interest rate. Once the smallest debt is eliminated you roll that payment to the next smallest balance. This creates early wins that build momentum and motivation. Research shows many people are more likely to successfully eliminate debt using this method even though it costs slightly more in total interest.

Paying only the minimum on a $5,000 credit card balance at 20% APR takes approximately 30 years to pay off and costs over $7,000 in interest — meaning you pay more than double the original balance. Increasing your payment to just $200 per month cuts the payoff time to 2.5 years and total interest to under $1,000. The Dayblip minimum payment calculator shows your exact numbers.

Mathematically you should pay off the highest interest rate debt first — typically credit cards at 18-29% APR. However if you have small balances you can eliminate quickly the psychological boost of early wins can be worth the small additional interest cost. Most financial advisors recommend always paying at least the minimum on all debts while putting extra money toward either the highest rate or smallest balance depending on your motivation style.