Debt Payoff Calculator
Compare debt snowball and debt avalanche payoff time, interest, and payoff order across multiple balances.
Debt snowball versus debt avalanche
The snowball method sends all money left after minimum payments to the smallest balance. The avalanche sends it to the highest APR. When a debt is paid, its former minimum remains inside the fixed monthly budget and rolls to the next target.
Monthly interest = current balance × APR ÷ 12
How the comparison works
Both strategies use the same starting balances, fixed APR values, minimum payments, and monthly budget. Each month the calculator adds interest, pays every active minimum, and directs the remaining budget according to the strategy. This isolates the effect of payoff order.
Which strategy should you choose?
The avalanche generally minimizes interest by attacking the most expensive rate first. The snowball may provide earlier small wins by closing the smallest balances first. The best practical method is one you can follow consistently while continuing every required minimum payment.
Example
If three debts have balances of $7,000, $3,500, and $10,000 at different APRs, the snowball targets $3,500 first while the avalanche targets the highest-rate balance. The calculator keeps the same total monthly budget for both and shows the resulting time and interest difference.
Important limits
The model supports up to five debts and assumes fixed APRs, fixed minimum dollar payments, monthly interest, no new charges, and payments made on time. Real cards may use daily interest, percentage-based minimums, fees, promotional rates, changing rates, and different statement dates. A result is not a lender payoff quote or financial advice. Group similar debts if more than five balances are needed.
Related calculators
- Credit Card Payoff Calculator — solve one revolving balance or a target term.
- Personal Loan Calculator — calculate fixed installment payments and origination fees.
- Mortgage Payoff Calculator — compare extra principal on a home loan.