Find Your Fastest Path to Debt Freedom
Compare every debt payoff strategy — avalanche vs snowball, aggressive vs minimum payments, refinancing vs investing — and find the one that saves you the most money over 20 simulated years.
45 million Americans owe $1.7 trillion in student debt
The right payoff strategy can save you $10,000–$30,000 in interest and free you years earlier. But how do you know which strategy is right without testing it first?
Average student loan debt per borrower
The typical graduate enters the workforce with $37,000 in student loans. Without a clear strategy, this debt follows you for decades and costs far more than the sticker price.
Average monthly student loan payment
That's $400 every month that could be invested, saved for a home, or building an emergency fund. The opportunity cost of slow repayment is enormous.
Average time to full repayment
With minimum payments, the average borrower takes 20 years to fully repay their student loans. That's two decades of interest eating into your financial progress.
Six strategies, one clear winner for you
Every borrower's situation is different. CapitalLab lets you simulate each strategy with your specific loan amounts, interest rates, and income to find the optimal path.
Minimum Payments Only
The default path. Pay exactly what's required each month and watch how long it takes to become debt-free. This is the baseline you'll compare every other strategy against.
Aggressive Payoff
Throw every extra dollar at your loans. See how doubling or tripling your monthly payment slashes years off your timeline and saves thousands in interest.
Avalanche Method
Pay minimums on everything, then attack the highest-interest loan first. Mathematically optimal for minimizing total interest paid over the life of your loans.
Snowball Method
Pay minimums on everything, then attack the smallest balance first. Builds momentum through quick wins. Costs slightly more in interest but keeps you motivated.
Refinancing
Consolidate your loans at a lower interest rate. See exactly how much you save (or don't) by refinancing — and whether the new terms actually accelerate your payoff.
Invest While Paying Minimum
What if you paid minimums and invested the difference? Compare the total wealth outcome of paying off debt fast vs. investing in the market over 20 years.
See how each strategy plays out over 20 years
Example outcomes for $37,000 in student loans at 6.5% interest. Your results will vary based on your specific loan details, income, and market conditions.
Minimum Payments
Aggressive ($800/mo)
Avalanche Method
Min Payments + Invest
Pay off debt fast or invest while paying minimums?
This is the most debated question in personal finance. The answer depends on your interest rates, risk tolerance, and income trajectory. CapitalLab lets you test both scenarios with your actual numbers.
Pay Off Debt Aggressively
Eliminate your loans as fast as possible. Free up cash flow sooner. Sleep better knowing you're debt-free. Best when loan interest rates are above 6–7%.
- Guaranteed return equal to your interest rate
- Frees up hundreds per month once paid off
- Psychological benefit of being debt-free
- Lower risk — no market dependency
Invest While Paying Minimums
If markets return 8–10% and your loans are at 4–5%, investing the difference could build more wealth long-term. But it requires discipline and tolerance for risk.
- Potentially higher total wealth after 20 years
- Compound growth starts working earlier
- Tax advantages of retirement accounts
- Higher risk — market returns aren't guaranteed
The only way to know which path wins for your situation? Simulate both.
Find your fastest path to debt freedom.
Stop wondering which payoff strategy is best. Simulate every option over 20 years and see exactly how much time and money each approach saves you.