Debt Payoff Calculator — Snowball vs Avalanche
A debt payoff calculator compares the two proven ways to get out of debt — the snowball method and the avalanche method — and shows your debt-free date, total interest and how much extra payments save you.
Payoff order
| Method | Order debts are cleared |
|---|---|
| Snowball (smallest first) | Store card → Credit card → Personal loan |
| Avalanche (highest APR first) | Credit card → Store card → Personal loan |
How it works
- Enter up to three debts: balance, interest rate (APR) and minimum monthly payment.
- Add any extra amount you can pay each month on top of the minimums.
- Compare the snowball and avalanche plans side by side — months to debt-free, total interest and the order your debts are cleared.
Formula
Worked example
Three debts totalling $14,700: a store card of $1,200 at 11% ($35 minimum), a credit card of $4,500 at 28% ($110 minimum) and a personal loan of $9,000 at 22% ($210 minimum). With $150 extra a month ($505 total), the snowball method clears everything in 44 months with $7,128.56 of interest, while the avalanche method takes 43 months with $6,623.23 of interest — saving $505.33. Paying only the minimums would take 87 months and cost $16,042.16 in interest.
Frequently asked questions
What is the debt snowball method?
Pay the minimum on every debt, then throw all extra money at the smallest balance. When it is gone, roll that payment into the next-smallest debt. The quick wins keep you motivated.
What is the debt avalanche method?
Pay the minimum on every debt, then throw all extra money at the highest interest rate. It always costs less interest than the snowball, because expensive debt is cleared first.
Which is better, snowball or avalanche?
Avalanche always saves more interest — in the example above it saves $505.33. But research finds people using the snowball are more likely to actually finish, because clearing a whole debt quickly feels like progress. Pick the one you will stick with.
How much does an extra payment save?
A lot. In the example, $150 extra a month cuts the payoff from 87 months to 43–44 months and saves about $9,000 in interest compared with minimums only.
Should I pay off the smallest debt or the highest interest first?
Highest interest first (avalanche) is cheapest. Smallest balance first (snowball) gives the first win sooner — in the example, the first debt is gone in month 7 with snowball, versus month 23 with avalanche.
Does this calculator include new charges?
No. It assumes fixed rates, no missed payments and no new spending on the cards. If you keep charging, the payoff date moves further away.