Finance

Debt Payoff Calculator

It plans a route out of several debts at once and shows exactly what the snowball and avalanche methods cost — in months, and in interest.

AdvancedUpdated 2026-07-28Free · no sign-up
Strategy
Your debts

Debt free in (avalanche)

2y 6m

$2,104 of interest on $15,200 of debt

Months to clear

30

Total interest

$2,104

Total paid

$17,304

Monthly outlay

$590.00

Snowball interest

$2,223

Avalanche interest

$2,104

Avalanche saves $119 in interest and 0 months over snowball here. Snowball clears its first debt in month 6, avalanche in month 21.
Order clearedMonthInterest paid
1. Credit card21$1,022
2. Store card22$248
3. Car loan30$834

Interest costs 14% of what you owe today.

What it calculates

It plans a route out of several debts at once and shows exactly what the snowball and avalanche methods cost — in months, and in interest.

Why it matters

The order you clear debts in changes the total cost. Avalanche is always cheaper mathematically; snowball clears individual debts sooner, which many people find easier to stick with.

Who it's for

Anyone juggling multiple cards and loans, and people deciding where an extra $200 a month should go.

Formula

each month: interest added, minimums paid, entire surplus to one target debt
Minimums
Paid on every debt every month
Extra
Surplus above the minimums
Snowball
Target the smallest balance first
Avalanche
Target the highest interest rate first

Worked example

$5,000 at 22%, $1,200 at 15% and $9,000 at 6%, with $200 extra a month

  1. 1Pay every minimum, every month
  2. 2Snowball sends the extra at the $1,200 balance first
  3. 3Avalanche sends it at the 22% card first
  4. 4As each debt clears, its minimum joins the surplus

Avalanche costs less interest; snowball clears the first debt sooner

How the debt payoff calculator works

Every month interest is added to each balance, minimums are paid on everything, and the entire surplus is thrown at one target debt. When a debt clears, its minimum rolls into the surplus — which is what makes either method accelerate, and where the snowball gets its name. Avalanche always wins on interest because it removes the most expensive balance first. The gap between the two is often small, and the method you actually stick with beats the one you abandon.

Every month interest is added to each balance, minimums are paid on everything, and the whole surplus is thrown at a single target. When a debt clears, its minimum rolls into the surplus — which is what makes either method accelerate.

Avalanche always wins on interest because it removes the most expensive balance first. The gap is often small, and the method you actually stick with beats the one you abandon.

Common mistakes

  • Spreading a surplus evenly across every debt, which clears none of them faster.
  • Paying only minimums, where most of the payment is interest and the balance barely moves.
  • Clearing debt while carrying no emergency buffer, so the next surprise goes straight back onto the card.

Tips and best practice

  • Check whether a 0% balance transfer beats either method before committing.
  • Keep the total payment fixed as debts clear; the freed-up minimum is what creates the acceleration.
  • If the interest gap between your debts is small, pick snowball — the motivation is worth more than the few dollars.

Frequently asked questions

What is the difference between the debt snowball and avalanche?

Snowball pays the smallest balance first for quick wins; avalanche pays the highest interest rate first for the lowest total cost. Avalanche is always cheaper, sometimes only slightly.

Which debt payoff method is best?

Avalanche costs the least interest. Snowball produces visible progress sooner, and research on real repayment behavior suggests that motivation matters — the best method is the one you finish.

Why does paying only the minimum take so long?

Minimums are typically set at 1–3% of the balance, most of which covers that month's interest. The principal barely moves, so the debt can run for decades.

Should I save or pay off debt first?

Build a small emergency buffer first, then attack the debt. Without a buffer, the next unexpected bill goes straight back onto the card you just cleared.

Does a balance transfer help?

A 0% transfer can save a lot if you clear the balance inside the promotional window. Factor in the transfer fee, usually 3–5%, and what the rate reverts to.

Related calculators

Methodology & trust

Formula source
Month-by-month amortization of multiple revolving and instalment debts.
Last updated
2026-07-28
Privacy
Every calculation runs in your browser. No inputs are sent to a server or stored.
Accessibility
Keyboard navigable, labeled inputs and WCAG AA color contrast.