What is the avalanche method?

The avalanche method pays minimums on all debts, then puts every extra euro towards the debt with the highest interest rate. This minimises total interest paid and is mathematically optimal.

What is the snowball method?

The snowball method pays minimums on all debts, then targets the smallest balance first. When that debt is cleared, you roll its payment into the next smallest. The quick wins keep you motivated.

Which strategy saves more money?

Avalanche always saves more on interest because it tackles the most expensive debt first. However, snowball can be psychologically easier because you eliminate individual debts faster, which keeps momentum going.

How does the extra payment work?

The extra payment is added on top of all your minimum payments each month. It goes entirely towards the target debt (highest rate for avalanche, smallest balance for snowball). When a debt is paid off, its minimum payment rolls into the next target — this is the 'snowball' effect that accelerates payoff.

Debt Payoff Calculator

Add your debts, choose a strategy, and see when you'll be debt-free. Compare avalanche (highest interest first) vs snowball (smallest balance first).

Debt 1

Debt name

Balance (€)

Interest rate (%)

Minimum payment (€)

Extra monthly payment

Extra monthly payment (€)

Payoff comparison

Add your debts, choose a strategy, and see when you'll be debt-free. Compare avalanche (highest interest first) vs snowball (smallest balance first).

How the debt payoff calculator works

Enter your debts with their balances, interest rates, and minimum payments. Add any extra money you can throw at your debt each month to see how fast you can become debt-free.

Add your debts

Enter up to 5 debts with their current balance, annual interest rate, and minimum monthly payment. Name them so you can track each one.

Set your extra payment

Any amount above your minimums accelerates payoff. Even an extra €50/month can save you thousands in interest and years of payments.

Compare strategies

Avalanche targets the highest-rate debt first (saves the most interest). Snowball targets the smallest balance first (quicker wins for motivation). See which works best for you.

Combine debt payoff with investing

Once your high-interest debt is gone, redirect those payments into investments. Track both your debt reduction and portfolio growth in Arfin to see your full financial picture.

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