Debt Payoff Calculator
List your debts, add any extra monthly payment, and compare the snowball method (smallest balance first) with the avalanche method (highest rate first).
Your debts
Your plan
Debt-free in
2y 10m
34 months · total interest 1,881
- Total debt
- 16,300
- Monthly payment (all debts)
- 545
- Total paid
- 18,181
Payoff order (avalanche)
- Store card: month 4
- Credit card: month 16
- Car loan: month 34
Avalanche: 2y 10m, interest 1,881. Snowball: 2y 10m, interest 1,881. Avalanche saves 0 in interest.
Pay minimums on every debt, then put everything extra on the target debt. When a debt is cleared, its payment rolls onto the next.
Good to know: Avalanche usually costs less interest. Snowball gives quicker early wins.
Please note: Illustrative estimate based only on the numbers you enter. This is not financial, investment, tax or legal advice and not an offer of any product. Real products have fees, rate changes and rules this tool does not model. Check figures with your lender or a qualified, independent adviser before you decide.
About this tool
Compare the snowball and avalanche debt payoff strategies across all your debts, showing payoff order, time to debt-free and total interest.
Formula
Each month, pay minimums on all debts, then apply the freed-up payment to the target debt — smallest balance (snowball) or highest APR (avalanche).
Reference values
- Avalanche minimises total interest
- Snowball gives faster early wins
- Total monthly payment stays constant as debts close
Questions people ask
What is the difference between snowball and avalanche?
Snowball pays the smallest balance first. Avalanche pays the highest interest rate first.
Which method is better?
Avalanche saves more money. Snowball can be easier to stick with because debts clear sooner.
What happens when a debt is paid off?
Its payment is added to the next debt, so your total payment stays the same.
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How we calculate this
We use the standard published formula or definition for this calculation, and we show the working so you can check it.
Spotted a mistake? Tell us and we'll check it. How we check our calculators