Debt Payoff Calculator: Snowball vs Avalanche
Add your debts and what extra you can pay. See when you could be debt-free, how much interest you would pay, and which method saves more.
What we noticed
Year by year
How this calculator works
Each month, every debt gets its minimum payment, and any extra money goes to one debt first. When that debt is gone, its payment moves to the next one, so your total monthly payment stays the same.
The avalanche method targets the highest interest rate first and usually costs the least. The snowball method targets the smallest balance first. It costs a little more, but clearing debts sooner keeps many people motivated.
This assumes fixed rates and no new borrowing, and it works for up to 3 debts. It is standard payoff maths, not financial advice.
The two methods
| Avalanche | Extra money goes to the highest interest rate first |
|---|---|
| Snowball | Extra money goes to the smallest balance first |
| Both | Keep paying minimums on every other debt |
Sources: Official source
Frequently asked questions
What is the debt avalanche method?
You pay the minimum on every debt and put any extra money on the debt with the highest interest rate. It usually saves the most interest.
What is the debt snowball method?
You put extra money on the debt with the smallest balance first. Clearing a debt quickly can build momentum, even if it costs a bit more in interest.
Which is better?
Avalanche costs less on paper. Snowball can help you stick with the plan. The calculator shows the difference for your debts.
Why does my payoff never finish?
If a monthly payment is smaller than the interest added each month, the balance never goes down. Raise the payment or add extra money.
Should I save or pay off debt?
High-interest debt, such as a credit card, usually costs more than savings earn. Many people keep a small emergency fund first. Your situation may differ.