Debt Payoff Calculator
Compare debt snowball and debt avalanche strategies to find your fastest debt-free date and minimize total interest paid.
Each month: minimums go to every debt; the extra (plus freed-up minimums) goes to the target debt. Interest is applied monthly, compounded in arrears.
Also covers: debt snowball vs avalanche calculator · credit card debt payoff timeline · multiple debt payoff planner
Formula & How It Works
interest this month = balance × (APR ÷ 100) ÷ 12
- Every month interest is added to each unpaid balance, then each account's minimum payment is applied.
- The extra payment is directed at one target: the highest interest rate under avalanche, the smallest balance under snowball.
- When an account clears, its minimum payment joins the extra pool and rolls into the next target. The simulation repeats until every balance reaches zero.
Step-by-Step Example
Two debts — $5,000 at 24% with a $150 minimum, and $2,000 at 15% with a $100 minimum — plus $200 extra every month.
- 1.Paid each month
- $150 + $100 + $200 = $450
- 2.Avalanche order
- 24% card first, then the 15% card
- 3.Snowball order
- $2,000 balance first, then the $5,000 card
- 4.Avalanche result
- 19 months · $1,247 interest
- 5.Snowball result
- 23 months · $1,547 interest
Avalanche clears everything in 19 months and saves about $300 in interest, while snowball takes 23 months but clears the first account in 8 months instead of 17.
Frequently asked questions
What is the difference between the Debt Snowball and Debt Avalanche method?
Snowball orders debts from the smallest balance to the largest and aims every spare dollar at the smallest first, so accounts close quickly. Avalanche orders them from the highest interest rate to the lowest, so the most expensive debt stops accruing as early as possible. Both pay every minimum on time — they differ only in where the extra payment goes.
Which debt payoff strategy saves the most money?
Avalanche usually costs the least interest because it attacks the highest rate first, and snowball can take slightly longer and cost a little more. With the sample debts on this page, avalanche finishes in 19 months with $1,247 of interest while snowball takes 23 months and $1,547. Snowball's advantage is motivation rather than maths — pick the one you will actually stick to.
How should I prioritize multiple credit card debts?
Keep every minimum payment on time to protect your credit, then send all spare money to one target debt while the others stay on minimums. Choose the target by highest interest rate for the cheapest payoff, or by smallest balance if quick wins keep you going. When a debt clears, roll its whole payment into the next target — that roll-over is the snowball effect.
About the Debt Payoff Calculator
Compare debt snowball and debt avalanche strategies to find your fastest debt-free date and minimize total interest paid.
It runs entirely in your browser — nothing you type is sent to a server — and the result updates as you edit the inputs. Estimates are for educational and informational purposes only; see ourdisclaimer.
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- debt
- avalanche
- snowball
- payoff
- snow ball
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