Debt payoff calculator
Every debt, one budget, a finish order that works.
Time to debt free
16 months
| Total interest on the way |
| Order | Debt | Clears in |
|---|
Snowball or avalanche: the honest difference
Both methods pay the minimum on every debt and throw everything left at one target debt. They differ only in how the target is chosen. Avalanche targets the highest APR, which is always the cheapest order in pure maths, because the most expensive balance dies first. Snowball targets the smallest balance, which clears a whole debt sooner and frees its minimum payment earlier; that quick first win is what keeps many people going for the months a payoff takes.
Switch the method above and compare the interest totals on your own numbers. When balances and rates are similar, the difference is often smaller than people expect, sometimes only tens of dollars, in which case the method you will actually stick to is the right one. The difference grows when a small debt also carries the worst rate, or when one large high-rate balance dominates the list.
The budget figure is the real engine either way. It has to cover every minimum first; whatever remains is the attack money, and each cleared debt adds its old minimum to that attack. That roll-over is why the last debt falls so much faster than the first.
Frequently asked questions
What is the difference between the snowball and avalanche methods?
Both pay every minimum and throw the leftover budget at one target debt. The snowball targets the smallest balance first, for early wins; the avalanche targets the highest interest rate first, which costs the least overall. This calculator runs both side by side on your numbers.
Which method saves more on a typical set of debts?
The avalanche, whenever rates differ. On the example debts here ($3,000 at 24%, $1,500 at 19%, $800 at 29%, with a $400 monthly budget), both methods finish in 16 months, but the avalanche pays $829 of interest against the snowball's $885.
What happens to the budget when a debt is cleared?
Its whole payment, minimum included, rolls onto the next target debt. That roll-over is what accelerates the plan: by the last debt, the full monthly budget is aimed at a single balance.
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Estimates only. Minimum-payment rules vary by issuer and fees are not modelled; this tool is not financial advice.