When you owe money in several places, the order you pay things off makes a real difference. The two best-known plans, the debt snowball and the debt avalanche, both keep your total monthly payment fixed and roll each paid-off debt’s payment into the next one. They differ only in which debt they target first. This debt payoff calculator runs both side by side on your actual debts. It shows the order, the month each debt disappears, your debt-free date and how much interest each method costs compared with paying only the minimums.
How to use the debt payoff calculator
- List your debts, one per line, as name, balance, APR, minimum payment. For example:
Visa, 6500, 24.99, 195. Write amounts without thousands commas. - Enter the extra payment you can add each month on top of all the minimums.
- Choose avalanche or snowball to see that plan’s order and schedule. The comparison table always shows both.
How the payoff plan works
Your monthly budget is the sum of all minimum payments plus the extra amount, and it stays the same until everything is paid off. Each month:
- Interest is added to every balance at APR ÷ 12.
- Every debt receives its minimum payment.
- Everything left over goes to the target debt: the highest APR (avalanche) or the smallest balance (snowball).
- When a debt hits zero, its minimum joins the extra payment for the next target.
Worked example
Four debts totaling $25,900, with $802 of minimums and $300 extra, for $1,102 a month:
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Visa | $6,500 | 24.99% | $195 |
| Store card | $2,400 | 19.49% | $72 |
| Car loan | $11,800 | 6.9% | $365 |
| Personal loan | $5,200 | 11.5% | $170 |
| Strategy | Debt-free in | Total interest |
|---|---|---|
| Avalanche | 2 years, 3 months | $3,745.23 |
| Snowball | 2 years, 4 months | $4,303.89 |
| Minimums only | 4 years, 10 months | $8,069.14 |
The avalanche clears the Visa first, after 16 months, then the store card, personal loan and car loan. The snowball knocks out the store card in just 7 months and the personal loan at 16 months. But the 24.99% Visa keeps charging interest for longer, which is why it costs about $559 more. Both cut total interest by more than half compared with paying minimums alone.
Getting the most from your plan
- Find extra money. Every $100 a month added to the budget shortens the plan. A windfall such as a tax refund applied to the target debt has the same effect.
- Stop adding new debt. Use cards only if you pay them off in full, or put them away while you pay down.
- Lower the rates. A 0% balance transfer or a lower-rate consolidation loan can speed things up if the fees are reasonable. Compare in the balance transfer calculator and the debt consolidation calculator.
- Keep a small emergency fund so a car repair doesn’t land back on a credit card.
To see how lower debt payments improve your borrowing profile, use the debt-to-income ratio calculator. For a single card, the credit card payoff calculator compares a fixed payment with the card’s shrinking minimum.
Estimates only, not financial advice. The calculator assumes fixed rates, no new charges or fees, and minimum payments that stay the same; real card minimums usually shrink as balances fall.
Frequently asked questions
What is the difference between the debt snowball and debt avalanche?
Both pay the minimum on every debt and put all extra money toward one target. The avalanche targets the highest interest rate first, which saves the most money. The snowball targets the smallest balance first, which clears whole debts sooner and can help you stay motivated.
How much does the avalanche method save?
It depends on how different your rates and balances are. In the default example of four debts totaling $25,900 with $300 extra a month, the avalanche costs $3,745 in interest against $4,304 for the snowball. That saves $559 and finishes one month sooner.
What happens when a debt is paid off?
Its minimum payment rolls over to the next debt in line, so your total monthly payment stays the same while more of it attacks principal. That rollover is what makes both methods faster than paying each debt's minimum separately. In the example, paying only the minimums takes 4 years and 10 months and costs $8,069 in interest.
Should I use the snowball or the avalanche?
If the cost difference is small, choose the method you will stick with. Many people stay motivated by seeing debts disappear. If one high-rate debt is also large, the avalanche can save a lot more. Either way, the key is a fixed monthly budget and no new borrowing.