⛓️ Debt Payoff Calculator
List every debt with its balance, APR and minimum payment, set your monthly budget, and compare the debt snowball with the debt avalanche side by side.
Quick answer: With $22,600 of debt across four accounts and a $900 monthly budget, the avalanche method makes you debt-free in 30 months with $3,615.37 of interest – $480.21 less than the snowball method ($4,095.58).
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Debt Payoff Calculator inputs
Result
Debt-free in
2 years 6 months
with the avalanche method, paying $900.00 a month
| Total debt | $22,600.00 |
| Avalanche (highest APR first) | 2 years 6 months · $3,615.37 interest |
| Snowball (smallest balance first) | 2 years 6 months · $4,095.58 interest |
- Avalanche saves
- $480.21
- Minimum payments
- $630.00
- Extra toward target debt
- $270.00
Snowball vs. avalanche
| Snowball | Avalanche | |
|---|---|---|
| Months to debt-free | 30 | 30 |
| Total interest | $4,095.58 | $3,615.37 |
| Total paid | $26,695.58 | $26,215.37 |
| First debt cleared | Store card (month 4) | Credit card (month 17) |
Payoff order
| # | Snowball: debt | Paid off | Avalanche: debt | Paid off |
|---|---|---|---|---|
| 1 | Store card | 4 months | Credit card | 1 year 5 months |
| 2 | Personal loan | 1 year 1 month | Store card | 1 year 6 months |
| 3 | Credit card | 1 year 11 months | Personal loan | 1 year 10 months |
| 4 | Car loan | 2 years 6 months | Car loan | 2 years 6 months |
Your debts
| Debt | Balance | APR | Minimum | Snowball rank | Avalanche rank |
|---|---|---|---|---|---|
| Credit card | $6,500.00 | 24.99% | $195.00 | 3 | 1 |
| Store card | $900.00 | 19.99% | $35.00 | 1 | 2 |
| Personal loan | $4,200.00 | 12.5% | $140.00 | 2 | 3 |
| Car loan | $11,000.00 | 7.9% | $260.00 | 4 | 4 |
How to use the debt payoff calculator
Enter each debt on its own line as name, balance, APR, minimum payment, then the total you can put toward debt each month. The calculator simulates both strategies month by month and shows how long each takes, the interest paid and the order your debts are cleared.
How the payoff is calculated
Every month interest is added to each balance, then every minimum is paid. Whatever is left of your budget goes to the target debt – the smallest balance (snowball) or the highest APR (avalanche) – and spills to the next debt once it is cleared.
Interest = Balance × APR ÷ 12 · Extra = Budget − Σ minimum payments
Worked example
Four debts totalling $22,600 – a $6,500 credit card at 24.99%, a $900 store card at 19.99%, a $4,200 personal loan at 12.5% and an $11,000 car loan at 7.9% – with $630 of minimums and a $900 budget. The avalanche clears the credit card first (month 17) and is debt-free in 30 months with $3,615.37 of interest. The snowball clears the store card in month 4, then the personal loan, and also finishes in 30 months – but pays $4,095.58 of interest, $480.21 more.
Snowball vs. avalanche at a glance
| Snowball | Avalanche | |
|---|---|---|
| Target first | Smallest balance | Highest APR |
| Total interest | Same or higher | Lowest possible |
| First win | Fastest | Can take longer |
| Best for | Motivation | Saving money |
Tips
- Stop adding new charges to the cards you are paying down.
- Put windfalls such as bonuses and tax refunds toward the current target.
- A 0% balance transfer or cheaper consolidation loan can lower the rate on the costliest debt.
Estimates for educational purposes, not financial advice.
Frequently asked questions
What is the difference between the debt snowball and avalanche?
Both pay the minimum on every debt and put all spare money toward one target. The snowball targets the smallest balance first for quick wins; the avalanche targets the highest interest rate first, which always costs the same or less interest.
Which method pays off debt faster?
The avalanche is mathematically optimal, so it is never slower and usually saves interest. The gap is small when your rates are similar, so the snowball's motivation boost can be worth it.
How do I enter my debts?
One debt per line in the order name, balance, APR, minimum payment – for example "Car loan, 12000, 6.5, 280". Use commas, semicolons or tabs between values, and don't put commas inside numbers.
What happens when a debt is paid off?
Its minimum payment rolls into the money aimed at the next target – that rolling payment is what makes both methods accelerate over time. Your monthly budget stays the same throughout.
Should I include my mortgage?
Usually not. Most people use these methods for consumer debt such as credit cards, car loans and personal loans, and keep paying the mortgage on its normal schedule.