Debt Payoff Calculator: Avalanche vs Snowball
The Debt Payoff Calculator compares the avalanche and snowball methods side by side so you can choose a payoff order that fits you. It is designed for beginners juggling more than one debt, and it is free with no signup.
What is the avalanche method?
Pay the minimum on every debt, then put every extra dollar toward the debt with the highest interest rate. Avalanche almost always saves the most money in interest.
What is the snowball method?
Pay the minimum on every debt, then put every extra dollar toward the smallest balance first. Snowball gives you quick wins that keep you motivated.
How it works
You list each debt with its balance, interest rate, and minimum payment, and then you add any extra amount you can put toward debt each month. The calculator pays every minimum, sends the extra money to one target debt, and rolls each freed up payment into the next debt once one is cleared. It shows the total interest and the payoff timeline for both methods so you can see the tradeoff clearly.
The formula in plain language
Each month, every debt grows by its yearly rate divided by 12, every minimum is paid, and the extra money goes to the highest rate debt with avalanche or the smallest balance with snowball.
A worked example
Suppose you owe $2,500 on a credit card at 22 percent and $6,000 on a car loan at 7 percent. In the first month the card adds about $46 in interest and the car loan adds about $35. The avalanche method sends your extra money to the card first because its rate is higher, while the snowball method would also start with the card here because it has the smaller balance.
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Frequently Asked Questions
What is the debt avalanche method?
The avalanche method pays the minimum on every debt, then throws every extra dollar at the debt with the highest interest rate first. It saves you the most money in interest over time because you eliminate your most expensive debt fastest.
What is the debt snowball method?
The snowball method pays the minimum on every debt, then attacks the smallest balance first. You get quick wins as small debts disappear, which keeps you motivated to keep going, even if it costs slightly more in interest than avalanche.
Which debt payoff method saves the most money?
Avalanche almost always saves the most money mathematically because it eliminates high-interest debt first. But snowball often wins in real life because the early wins keep people motivated. The best method is the one you'll actually stick with.
How long will it take to pay off my debt?
Divide each balance by what you can pay toward it each month, then add interest. Enter your debts above and the calculator shows the exact payoff month for both methods. Adding even $50 a month above the minimums usually cuts months or years off the timeline.
How can I pay off debt fast on a normal salary?
Pick one target debt, set one automatic extra payment toward it on payday, keep every other debt at the minimum, and stop adding new charges to that card. When the target is gone, roll its whole payment into the next one.
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For educational purposes only. Not financial advice.