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Debt Payoff Calculator: Snowball vs Avalanche

List each debt with its balance, APR and minimum payment, then add any extra you can pay each month. The avalanche method (highest APR first) usually costs the least interest; the snowball method (smallest balance first) clears your first debt sooner.

Debt Payoff Calculator
Currency
Debt 1
Debt 2

Paid on top of your minimums.

Snowball vs avalanche vs minimums

Enter the balance, APR and minimum payment for at least one debt to compare plans.

Interest is estimated monthly at APR ÷ 12 with fixed rates and no new charges or fees. Your lender's figures may differ slightly. Estimate only. Not financial advice. Check with a qualified professional.

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How to use the Debt Payoff Calculator

  1. Choose your currency and enter each debt's balance, APR and minimum monthly payment. Add up to 10 debts.
  2. Enter any extra amount you can pay each month on top of the minimums.
  3. Compare the snowball and avalanche plans with paying only the minimums: time to debt-free, total interest and the order debts are paid off.
  4. Point at the balance chart to read any month, or open the month-by-month schedule to see each payment, the interest and the balance left.
  5. Pick the plan you will stick with, and keep paying at least the minimum on every debt.

How the plans work

Every month, each debt grows by its monthly interest (APR ÷ 12). Your total budget is the sum of the minimum payments plus your extra amount. Each debt gets its minimum first, and everything left goes to the target debt. When the target is paid off, the money that was going to it rolls over to the next one, so the payment on each new target keeps growing.

  • Snowball: target the smallest balance first. Ties go to the higher APR.
  • Avalanche: target the highest APR first. Ties go to the smaller balance.
  • Minimums only: each debt gets just its own minimum. Nothing extra is paid, and a cleared debt’s minimum is not moved to the others. This is the baseline the plans are compared with.

The chart shows the total you owe across all debts each month. Avalanche is the solid line, snowball the dashed line and minimums only the dotted line. When the two plans end up the same, their lines overlap.

Getting the numbers right

Use the current balance and APR from your latest statement or online account. For a card with a promotional 0% rate, enter the rate you will pay after the promotion if it ends before you expect to finish. The minimum payment on cards usually falls as the balance falls; this calculator keeps it fixed, which is how most payoff plans are followed in practice.

Tips that speed up any plan

  • Keep paying at least the minimum on every debt to avoid late fees and credit damage.
  • Stop adding new charges to the debts you are paying off.
  • Put windfalls, such as a tax refund or bonus, toward the current target debt.
  • Ask your card issuer for a lower rate, or compare a balance transfer, but check the transfer fee.

Frequently asked questions

What is the difference between the debt snowball and avalanche methods?

Both pay the minimum on every debt and put any extra money on one target debt. Snowball targets the smallest balance first, so you clear whole debts sooner. Avalanche targets the highest interest rate first, which usually costs less interest overall. When a debt is paid off, its payment rolls into the next target.

Which method saves the most money?

Avalanche almost always pays the least interest, because the most expensive debt shrinks fastest. The difference can be small when your interest rates are close or your balances are small. The calculator shows the exact difference for your debts.

Is the snowball method worth it if it costs more?

It can be. Clearing a small debt quickly frees up its minimum payment and gives a visible win, which helps many people keep going. If the extra interest is small, the plan you will stick with is the better plan.

How is interest calculated?

Each month the calculator adds interest of APR ÷ 12 on the balance, then applies your payments. Most credit cards charge interest daily on the average daily balance, so your statements can differ by a few cents or dollars. Rates are assumed fixed, with no new charges or fees.

What if my payment does not cover the interest?

If a debt's interest is close to or more than what you pay each month, the balance barely moves or grows. The calculator says when a plan would take more than 50 years. Adding even a small extra payment can change that, and a lender or nonprofit credit counselor may be able to lower the rate.

What does the minimums-only column show?

It shows what happens if you pay only each debt's minimum and nothing extra, and a paid-off debt's minimum is not moved to the others. It is the cost of having no plan, so you can see how much time and interest a snowball or avalanche plan saves.

Can I see a month-by-month payment schedule?

Yes. Open the month-by-month schedule under the chart and pick a plan. Each row shows the total payment, the interest added that month, the balance left across all debts and any debt paid off that month.

Last updated: · Sources: CFPB: How to reduce your debt, CFPB: What is a credit card interest rate? What does APR mean?

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