Debt Snowball / Avalanche Calculator
Compare the debt snowball and debt avalanche payoff strategies to see which gets you debt-free faster and cheaper.
Payoff order
| Debt | Balance | APR | Paid off in |
|---|
Debt snowball vs. debt avalanche
Both strategies put every extra dollar you can find toward one "target" debt while paying the minimum on everything else — the difference is which debt you target first. The snowball method targets your smallest balance first, giving you fast psychological wins as debts disappear quickly. The avalanche method targets your highest interest rate first, which mathematically minimizes the total interest you'll pay. This calculator runs the full month-by-month simulation for whichever method you choose, so you can see the real numbers for your own debts.
How the simulation works
Each month, interest accrues on every debt's balance, minimum payments are applied to each debt, and any extra money — plus the minimum payments freed up from debts you've already paid off — is funneled entirely toward the current target debt, in the order set by your chosen method. This "snowballs" your payoff power as each debt disappears.
Which method should you choose?
If you're motivated by quick wins and want to build momentum, snowball is often easier to stick with. If you want to guarantee the lowest total interest paid, avalanche is mathematically optimal. Try switching between the two methods above with your own numbers — for debts with similar balances and rates, the difference is often small, but it can be significant when one debt has a much higher interest rate.
Frequently asked questions
Why does the payoff order matter if I'm paying the same total each month?
Because interest compounds on whichever debts remain unpaid the longest. Targeting high-rate debt first (avalanche) minimizes how much total interest accrues, while targeting low-balance debt first (snowball) clears individual debts faster, which some people find more motivating.
What if I can't find any extra money to add?
Even with $0 extra, this calculator will still show your payoff timeline using minimum payments alone (set the extra payment field to 0) — though finding even a small amount to add can meaningfully speed things up, as the interest-saved comparison shows.
Should I include my mortgage in this calculator?
This tool is designed for consumer debts like credit cards, personal loans, and auto loans that you're actively trying to eliminate. Most people exclude long-term, low-rate debts like mortgages from a debt payoff plan.
What happens when one debt gets paid off?
Its minimum payment amount doesn't disappear — it rolls into the extra amount being funneled toward your next target debt, which is what makes the payoff "snowball" and accelerate over time.