Debt Payoff Calculator
avalanche method
Payoff order: Car Loan → Credit Card
snowball method
Payoff order: Car Loan → Credit Card
Method comparison
| Method | Months | Total interest |
|---|---|---|
| Avalanche (highest rate first) | 46 | $3,403.40 |
| Snowball (smallest balance first) | 46 | $3,403.40 |
Avalanche: highest rate first · Snowball: smallest balance first
How Debt Payoff Strategies Work
When carrying multiple debts, two popular payoff strategies help you eliminate them systematically: the avalanche method and the snowball method. Both require making minimum payments on all debts while directing extra money toward one target debt at a time. Once the target is paid off, its payment rolls into the next debt — creating an accelerating "snowball" of payments.
The avalanche method targets the highest-interest debt first, minimizing total interest paid. If you owe $3,000 at 22% APR and $7,000 at 12% APR with $500/month total available, pay minimums on the $7,000 debt and attack the $3,000 balance first. Mathematically, this saves the most money — every dollar applied to 22% debt saves more than dollars applied to 12% debt.
The snowball method targets the smallest balance first, regardless of interest rate. Pay off the $3,000 debt first even if a $7,000 debt has a lower rate. The psychological wins from eliminating accounts quickly provide motivation to stay committed — research suggests behavior matters as much as math in debt payoff success.
Both methods dramatically outperform making only minimum payments. On $10,000 total debt at an average 18% APR, paying $300/month minimums might take 5+ years with $5,000+ in interest. Adding $200 extra per month using either strategy can cut the timeline to under 2 years and save thousands. The key is consistency — regular extra payments compound into faster freedom.
Enter your debts with balances, interest rates, and minimum payments, plus your total monthly budget, to see projected payoff dates and total interest for both avalanche and snowball approaches. Choose the strategy that keeps you motivated while understanding the mathematical trade-offs.
Examples
| Example | Result |
|---|---|
| $3,000 at 22% + $7,000 at 12%, $500/month | Avalanche: ~20 months, ~$1,450 total interest |
| $2,000 at 18% + $5,000 at 15%, $300/month | Snowball: ~26 months, ~$1,890 total interest |
| $1,500 at 24% + $4,500 at 10%, $250/month | Avalanche: ~28 months, ~$980 total interest |
| $8,000 at 16% + $12,000 at 9%, $600/month | Avalanche: ~42 months, ~$3,720 total interest |
| $500 at 20% + $2,500 at 14%, $150/month | Snowball: ~22 months, ~$520 total interest |
| $6,000 at 19% + $6,000 at 11%, $400/month | Avalanche: ~34 months, ~$2,850 total interest |
| $4,000 at 21% + $1,000 at 8%, $200/month | Snowball: ~30 months, ~$1,340 total interest |
Frequently asked questions
Pay minimums on all debts, then put extra money toward the highest-interest debt first. This minimizes total interest paid.
Pay minimums on all debts, then put extra money toward the smallest balance first. Quick wins provide motivation to stay on track.
Avalanche saves more interest mathematically. Snowball provides faster psychological wins. Choose the one you will stick with consistently.