Debt Payoff Calculator
The debt snowball pays smallest balances first for psychological wins. The debt avalanche targets highest interest rates first to minimize total cost. Enter all your debts below to see exactly how much each method costs, how many months to debt-free, and which payoff order saves the most money.
How Debt Payoff Strategies Work
Both methods use the same total monthly payment — the sum of all minimums plus your extra payment. The difference is where the extra dollar goes. The simulation runs month by month: each month, interest accrues on every balance, minimums are paid, and the extra payment attacks the target debt. When a debt is fully paid off, its freed minimum rolls into the extra payment for the next target (the "snowball" or "avalanche" effect).
Example: $28,700 in debt — $8,500 credit card at 22.99%, $3,200 card at 19.99%, $12,000 car loan at 7.5%, $5,000 personal loan at 11.0%. Total minimums: $634/mo. Add $200 extra. Avalanche saves $487 in interest vs. snowball and finishes 1 month earlier — a modest difference because rates are varied. With more uniform balances or higher rate spreads, avalanche savings grow larger.
💡 Pro Tip: The $100 Rule
The difference between snowball and avalanche is often smaller than people expect — usually less than 5% of total interest. If you're debating endlessly between methods, just pick one and start. The most important variable isn't which method you choose — it's the extra payment amount. Adding $100/mo to any method typically outperforms the "perfect" method with no extra payment. Run this calculator at $0, $100, and $300 extra to see the dramatic impact of just one more payment per month.
Debt Payoff Calculator — Snowball vs. Avalanche
Your Debts
Comparison
Debt Breakdown
Based on your results — what to do next:
See full credit card payoff timeline
Your total debt of $28,700 will take ~49 months with the avalanche method. Drill into individual credit cards to see minimum-only vs. aggressive payoff.
Track your net worth as debt drops
Paying off $28,700 in debt directly increases your net worth by the same amount. See your full financial picture.
Build savings after debt payoff
After payoff, your freed $834.00/mo can be redirected to savings. See how fast you can hit your next goal.
Debt Payoff FAQ
What if I can only afford minimums right now?
Paying minimums only on credit cards with 20%+ APR barely keeps up with interest — it can take 15–20+ years to pay off a $10,000 balance. Even $50/month extra makes a massive difference. If minimums are your limit, focus on stopping new debt accumulation and building even a $1,000 emergency fund to avoid credit card reliance. Once one debt is paid off in the snowball/avalanche, do NOT increase spending — redirect the freed cash flow immediately.
Should I consolidate my debt before using this calculator?
Debt consolidation (balance transfer cards at 0% intro APR, personal loans at 10–12%, or HELOCs at 8.5%) can reduce your effective rate — making any payoff method more powerful. Run the calculator both ways: current rates vs. consolidated rate. A 0% balance transfer for 18 months on a $10,000 card balance at 22% saves ~$3,300 in interest (at minimum payments) — that's free money. The risk: if you don't pay it off before the intro period expires, the rate resets to 20%+.
What about the debt "hybrid" method?
Some financial advisors recommend a hybrid: use snowball for any small debts under $2,000 (quick wins), then switch to avalanche for larger balances. This provides early motivation while optimizing math for the bigger debts. If you have one credit card with a $500 balance, knock it out first regardless of rate — it takes 2–3 months and eliminates a monthly payment entirely, simplifying your finances. Enter your debts and try both methods to see if the savings difference is large enough to override your behavioral preference.
What counts as "extra payment" in this calculator?
Extra payment is any amount above and beyond the combined minimums across all your debts. If your minimums total $634/mo and you can afford $834/mo total, enter $200 as the extra payment. The calculator then applies that $200 to the target debt each month. As debts are paid off, the freed minimum payments are automatically added to the extra pool (the "rolling snowball" or "avalanche" effect), so your effective extra payment grows over time even if you don't change your total monthly payment.