Debt Payoff Calculator
Compare the snowball and avalanche methods to find the fastest, cheapest way to become debt-free.
Your Debts
Amount above minimum payments you can put toward debt
Avalanche Method
Pay highest interest rate first
3 yr 3 mo
Total interest: $2,790.79
Snowball Method
Pay smallest balance first
3 yr 4 mo
Total interest: $2,836.57
The avalanche method saves you $45.78 in interest.
Total Debt
$25,000.00
Monthly Payment
$850.00
How to Use This Calculator
- 1.Add each of your debts with their balance, interest rate, and minimum payment.
- 2.Enter the extra amount you can pay above minimums each month.
- 3.Compare the avalanche and snowball results to choose your strategy.
The Formula
Avalanche: Pay minimums on all debts, then put extra toward the highest interest rate debt.
Snowball: Pay minimums on all debts, then put extra toward the smallest balance debt.
When a debt is paid off, its minimum payment rolls into the next target debt, accelerating payoff.
Example Calculation
With $25,000 in total debt across 3 accounts and $200 extra per month:
- Avalanche targets the 22% credit card first (saves the most interest)
- Snowball targets the $5,000 credit card first (quickest win for motivation)
- Avalanche typically saves hundreds to thousands in interest over snowball
Why This Matters
The avalanche method is mathematically optimal — it minimizes total interest paid. The snowball method provides quicker psychological wins by eliminating small debts first, which keeps many people motivated. The best method is the one you'll stick with.
Consolidate your debt
A personal loan at a lower rate can simplify multiple payments into one and save you money on interest.
Check Your RateFrequently Asked Questions
Which is better: snowball or avalanche?
Mathematically, avalanche saves more money. Psychologically, snowball provides quicker wins. Studies show people who use snowball are slightly more likely to stick with their plan. Choose based on your personality.
How much extra should I pay?
Even $50-100 extra per month makes a significant difference. The more you can pay above minimums, the faster you'll be debt-free and the less interest you'll pay.
Should I save or pay off debt first?
Build a small emergency fund ($1,000-2,000) first, then aggressively pay down high-interest debt (above 7%). Low-interest debt can coexist with investing if your returns exceed the interest rate.
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