Debt Payoff Calculator
Compare the avalanche and snowball methods across all your debts at once, and see exactly when you'll be completely debt-free. Works in any currency.
Add Your Debts
List each debt with its balance, rate, and minimum payment.
Avalanche vs. Snowball: What's the Difference?
Both methods work the same basic way: pay the minimum on every debt, then throw every extra dollar at one debt at a time until it's gone, then move to the next. The only difference is which debt you attack first.
Avalanche targets the debt with the highest interest rate first. Mathematically, this always saves you the most money in total interest, since you stop the most expensive debt from growing the fastest.
Snowball targets the smallest balance first, regardless of rate. It usually costs a little more in interest, but clearing a full debt quickly can build momentum and motivation, which matters if sticking with the plan is the harder part.
How This Calculator Works
Once you choose a strategy, this calculator simulates your debts month by month. It pays the minimum on every debt, then adds your extra payment to whichever debt is first in line. When that debt reaches zero, its old minimum payment doesn't disappear; it gets added to the extra payment pool and rolls into the next debt in line. This snowballing effect is what makes later debts disappear faster than the earlier ones.
A Quick Example
Say you have two debts: a $4,000 credit card at 24% APR with a $100 minimum, and a $2,000 personal loan at 12% APR with a $60 minimum. You can put an extra $150 a month toward debt.
- Avalanche (credit card first, since it has the higher rate): both debts cleared in under 2 years, with less total interest paid overall.
- Snowball (personal loan first, since it's the smaller balance): the personal loan disappears faster, giving an early win, but total interest ends up somewhat higher since the expensive credit card keeps accruing interest a bit longer.
Try both strategies above with your own numbers to see the real difference for your situation.
Which Strategy Is Right for You?
- Choose avalanche if you're motivated by saving the most money and don't need the psychological boost of an early win.
- Choose snowball if you've struggled to stick with a debt payoff plan before, and an early "debt paid off" moment would help you keep going.
- Either way, the biggest lever is your extra payment amount. The strategy you choose matters less than how much extra you can consistently put toward debt each month.
Common Mistakes People Make
- Spreading extra payments across all debts evenly. This feels fair, but it's mathematically slower than focusing on one debt at a time.
- Forgetting to roll freed-up minimums forward. Once a debt is paid off, redirect its old minimum payment to the next debt immediately, rather than letting it quietly become spending money.
- Not including every debt. Leaving out a smaller debt, like a store card, can throw off the real payoff timeline.
- Giving up after one missed month. A skipped extra payment doesn't ruin the plan; it just adds a small delay. Restart the following month.
Frequently Asked Questions
Yes. The math is currency-neutral. Enter your balances in your own currency and the results will be in the same unit.
Avalanche almost always saves more in total interest, since it tackles the highest-rate debt first. The gap is usually small if your rates are close together, and larger if one debt has a much higher rate than the others.
Yes. There's no penalty for switching; the math simply recalculates from wherever your balances currently stand.
Most people leave mortgages out and focus this method on higher-rate consumer debt like credit cards, personal loans, and car loans, since mortgage rates are usually much lower.
This calculator assumes all minimums are being paid. If that's not currently possible, it's worth speaking with a credit counselor before anything else, since missed minimum payments can trigger penalty rates and fees.
Dealing with one card specifically? Try the Credit Card Payoff Calculator.