💳 Debt Payoff Calculator

Order: Pay off SMALLEST balance first Steps: 1. Pay minimum on ALL debts 2. Put ALL extra money toward smallest balance 3. When that debt is paid off, roll its payment to the next smallest balance 4. Repeat until debt-free Pros: Psychological wins, momentum, motivation Cons: Pays more total interest than avalanche Best for: People who need motivation to stay on track

Order: Pay off HIGHEST INTEREST RATE first Steps: 1. Pay minimum on ALL debts 2. Put ALL extra money toward highest-rate debt 3. When paid off, roll payment to next highest rate 4. Repeat until debt-free Pros: Saves the MOST money mathematically Cons: Can take long if highest-rate debt is large Best for: Motivated people who want max savings

$10,000 credit card at 20% APR, $250/min payment: No extra payment: 58 months, $4,440 interest +$100 extra: 40 months, $2,850 interest (saves $1,590) +$200 extra: 31 months, $2,120 interest (saves $2,320) +$500 extra: 20 months, $1,290 interest (saves $3,150) Every dollar of extra payment is a GUARANTEED return equal to the debt interest rate.

Monthly Interest = Balance × (APR / 12 / 100) Principal Paid = Payment − Monthly Interest New Balance = Old Balance − Principal Paid Months to payoff (fixed payment P, rate r, balance B): n = -log(1 - B×r/P) / log(1+r) With rolling payments (snowball/avalanche): Simulate month by month — when one debt is paid, add its minimum to the next target debt's payment.