Debt Payoff Calculator
Compare avalanche vs snowball debt payoff strategies to find the fastest, cheapest way to become debt-free.
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The avalanche method pays off high-interest debt first, minimizing total interest paid. The snowball method pays off smallest balances first, building momentum. Avalanche almost always saves more money; snowball provides psychological wins that keep some people motivated. This calculator shows exactly how they compare for your specific debts.
Example
3 debts: Credit Card $5,000 at 19.99%, Car Loan $12,000 at 6.5%, Student Loan $25,000 at 5.5% Minimums: $100, $250, $300
How it works
Each month: 1. Apply interest to all balances (monthly rate = annual rate ÷ 12) 2. Pay minimums on all debts 3. Apply extra payment to target debt (highest rate for avalanche, smallest balance for snowball) 4. When target debt is paid off, roll its payment into the next target
Avalanche vs Snowball
Avalanche: Target highest-rate debt first (mathematically optimal). Best for people motivated by saving money. Snowball: Target smallest balance first (psychologically rewarding). Best for people who need early wins to stay on track. In most cases, avalanche saves more interest. But the best method is the one you'll stick to.
Frequently Asked Questions
Which method is mathematically better?
Avalanche always pays equal or less total interest than snowball, because you eliminate high-rate debt faster. The savings vary from small to significant depending on your specific debts.
What if I have no extra money?
Set extra payment to $0. The calculator still compares strategies — even without extra money, the order you target debts matters.
Should I include my mortgage?
Optionally. Mortgages have low rates and are often excluded from debt payoff calculations. Focus on high-rate consumer debt first.
What about balance transfers?
If you transfer a balance to a 0% card, enter the new rate. Even at 0%, the balance still gets paid. After the promo period, update the rate.