Debt Payoff Calculator: Snowball vs. Avalanche
Compare the debt snowball and debt avalanche methods with your real balances. See your payoff date, total interest, payoff order, and a month-by-month schedule.
Your debts
How to use this calculator
List every debt you want to pay off: its current balance, its annual percentage rate (APR), and the minimum payment your lender requires. Then enter the total amount you can put toward all of your debts each month. That total must at least cover the minimums; anything above them is your "extra" payment, and it's what makes both methods work.
The calculator runs your debts forward one month at a time. Each month it adds interest to every balance, pays each debt's minimum, then sends all leftover money to one target debt. When a debt is paid off, its minimum payment rolls into the extra amount for the next target. That rolling effect is why your payments speed up toward the end of the plan.
The debt snowball method
With the snowball, you target the smallest balance first, regardless of interest rate. Small debts disappear quickly, which gives you visible wins early on and frees up their minimum payments sooner. Many people find that momentum helps them stick with a plan for the months or years it takes. The trade-off is that you may pay somewhat more interest, because a large high-rate balance keeps growing while you clear smaller ones.
The debt avalanche method
With the avalanche, you target the highest interest rate first. Mathematically this is the cheapest order: every extra dollar goes where it stops the most interest from accruing. Our results show how much the avalanche saves compared with the snowball for your specific debts. Sometimes it's hundreds of dollars; sometimes, when your smallest debt also has the highest rate, the two methods are identical.
Which method should you choose?
If the interest difference is small, pick the method you're more likely to keep following — consistency matters more than a few dollars. If the gap is large (common when one credit card carries a rate above 25%), the avalanche usually deserves a serious look. Some people use a hybrid: knock out one or two tiny balances for a quick win, then switch to highest-rate-first. You can model that here by temporarily removing small debts and recalculating.
Reading your results
The summary shows how long each method takes and the total interest paid. The chart plots your combined balance over time for both methods. Open the month-by-month schedule to see how much you pay, how much of it is interest, and what remains after each month. The payoff order lists the debts in the order they reach zero.
Assumptions and limits
This is a planning estimate. It assumes your rates stay the same, you make every payment on time, and you add no new debt. Real lenders often calculate interest daily and may add fees, so your statements will differ slightly. Promotional 0% rates that later expire, variable-rate loans, and minimum payments that shrink as the balance falls aren't modeled — for those, use the current figures and recalculate every few months. If you're struggling to make minimum payments at all, a nonprofit credit counselor can review options such as a debt management plan.
Estimates only, not financial advice. Results assume a fixed interest rate, payments made on time each month, no new charges or fees, and interest compounded monthly. Your lender's actual figures may differ. See our disclaimer.
Frequently asked questions
Is the debt avalanche always cheaper than the snowball?
The avalanche never costs more interest than the snowball when all other inputs are the same, because extra money always goes to the highest rate. If your smallest debt also has the highest rate, both methods pick the same order and cost the same.
What monthly budget should I enter?
Enter the total you can reliably pay toward all listed debts each month, including the minimums. If you are unsure, start with the sum of your minimums plus whatever you can free up in your budget, then test a few amounts to see how each extra $50 changes the payoff date.
Why does the calculator say my budget is too low?
Every debt needs at least its minimum payment each month. If your monthly budget is below the total of all minimum payments, no payoff plan is possible without missing payments, so the calculator asks you to raise the amount.
Does this include new purchases on my credit cards?
No. It assumes you stop adding new charges to the debts you list. New spending on those accounts will lengthen the payoff time.
How accurate is the payoff date?
It is an estimate. Lenders often compute interest daily and may change rates or add fees, so expect small differences. Recalculate with fresh statement balances every few months to stay on track.