Debt Payoff Calculator: Snowball vs. Avalanche
Enter your debts and the total you can pay each month. See your debt-free date, the total interest, and the exact order in which your debts disappear.
Your debts
| Debt | Balance ($) | APR (%) | Min. payment ($) | Remove |
|---|---|---|---|---|
Your payoff plan
Payoff order
| Order | Debt | Balance | APR | Paid off |
|---|
Month-by-month schedule
| Month | Paid | Interest | Remaining balance |
|---|
This calculator is for education and planning only and is not financial, tax or legal advice. Results are estimates based on the numbers you enter. Everything is calculated in your browser; nothing you type is sent or stored.
How the calculator works
Each month, every balance first grows by one twelfth of its annual percentage rate (APR). Then the minimum payment is paid on every debt that still has a balance. Whatever is left of your monthly budget after the minimums is the extra payment, and it goes to the current target debt. If the target is paid off with money to spare, the rest flows straight to the next debt in line during the same month.
When a debt reaches zero, its minimum payment stays in the budget and rolls over to the next target. Your total monthly payment stays constant, but the payment that hits each remaining debt keeps growing. That is the "snowball" effect, and it applies to both methods.
Snowball or avalanche?
The debt snowball orders debts from the smallest balance to the largest. The first debts disappear quickly, which many people find motivating. Behavioral research suggests that closing accounts early helps people stick with a payoff plan, and a plan you stick with beats a perfect plan you abandon.
The debt avalanche orders debts from the highest APR to the lowest. Because the most expensive balance is attacked first, it minimizes total interest. The difference is largest when a high-interest debt also has a high balance.
With the example debts on this page and a budget of $900 per month, both methods finish in 23 months. The snowball pays $1,691.82 in interest; the avalanche pays $1,647.47, about $44 less. For many households the difference is small enough that motivation matters more. For others, with large credit card balances at 25% APR or more, the avalanche can save hundreds or thousands of dollars. Switch the method above to compare for your own numbers.
How to use it
- List every debt you want to pay off with its current balance, APR and minimum monthly payment. You find these on your latest statement or in your lender's app.
- Enter your total monthly debt budget. This is everything you can put toward these debts each month, including the minimums. Look at your paycheck budget to find realistic room for extra payments.
- Choose a method and read the payoff order and dates. The comparison line shows what the other method would cost and how much faster you are than with minimum payments only. Open the month-by-month schedule to see each payment, the interest and the remaining balance.
Ways to get debt-free faster
- Raise the budget a little. Even $50 more per month can cut months off the plan; try it in the calculator.
- Use windfalls. Tax refunds, bonuses and three-paycheck months can go straight to the target debt.
- Lower the rate. Calling a card issuer to ask for a lower APR, or moving a balance to a cheaper loan, reduces interest under either method. Watch for transfer fees.
- Keep a small emergency fund. Without one, an unexpected expense often ends up back on a credit card. A savings goal for emergencies protects your progress.
Frequently asked questions
What is the difference between the debt snowball and the debt avalanche?
Both methods pay the minimum on every debt and put all extra money on one target debt. The snowball targets the smallest balance first, which gives quick wins. The avalanche targets the highest interest rate first, which usually costs less interest overall.
Which method saves more money?
The avalanche method is mathematically cheaper or equal, because the most expensive debt is paid down first. How big the difference is depends on your debts. With the example numbers it saves about $44 in interest over the same 23 months. The calculator shows the comparison for your own numbers.
What happens when a debt is paid off?
Its minimum payment is not removed from your budget. It rolls over to the next target debt, so the amount you pay toward debt stays the same each month while the payments on the remaining debts get bigger. This rollover is what makes both methods work.
How is interest calculated?
The calculator applies one twelfth of the APR to each balance every month before the payment is made. Real lenders often calculate interest daily on the average balance, so actual numbers can differ slightly. Use the result as a planning estimate.
Why does it say my budget is too low?
Your monthly budget must at least cover all minimum payments. If it does not, some debts would fall behind. Raise the budget or contact the lender about your options.
Should I include my mortgage?
Usually not. Most people use the snowball or avalanche for consumer debt such as credit cards, personal loans, car loans and medical bills, and keep the mortgage on its regular schedule.