🎯 Debt Payoff Calculator
Compare snowball vs avalanche debt payoff strategies
Debt List
With current strategy, you will be debt-free in
25 months
2028-07-28
Strategy Comparison
Snowball
25 mo
$2,970
Avalanche
25 mo
$2,970
🏆 Snowball is better: saves $0 , 0 months faster
Debt Payoff Timeline
Payoff Order (Avalanche)
Payment Schedule
| # | Date | Balance | Cum Int |
|---|---|---|---|
| 1 | 2026-07-28 | $26,079 | $279 |
| 3 | 2026-09-28 | $24,193 | $793 |
| 5 | 2026-11-28 | $22,248 | $1,248 |
| 7 | 2027-01-28 | $20,242 | $1,642 |
| 9 | 2027-03-28 | $18,177 | $1,977 |
| 11 | 2027-05-28 | $16,060 | $2,260 |
| 13 | 2027-07-28 | $13,888 | $2,488 |
| 15 | 2027-09-28 | $11,661 | $2,661 |
| 17 | 2027-11-28 | $9,376 | $2,776 |
| 19 | 2028-01-28 | $7,057 | $2,857 |
| 21 | 2028-03-28 | $4,716 | $2,916 |
| 23 | 2028-05-28 | $2,354 | $2,954 |
| 25 | 2028-07-28 | $0 | $2,970 |
How It Works
Monthly Payment Calculation
Formula：
Monthly Interest = Balance × (APR ÷ 12)
Monthly Payment = Min Payment + Extra Funds
New Balance = Old Balance + Interest - Payment
Each month, interest is calculated on all active debts and minimum payments are made. Remaining budget is allocated as extra payments according to the chosen strategy.
Snowball Method
Sort: By remaining balance ascending
Extra payment priority: Smallest balance first
Snowball: Sort by balance ascending. Small wins build momentum.
Each paid-off debt frees up cash that rolls into the next one (snowball effect).
Avalanche Method
Sort: By APR descending
Extra payment priority: Highest APR first
Avalanche: Sort by interest rate descending. Mathematically optimal.
Eliminating high-interest debt first minimizes total interest — the mathematically optimal solution.
Total Interest Comparison
Total Interest = Σ(Monthly Interest per Debt)
Interest Saved = |Snowball Total - Avalanche Total|
Months Saved = |Snowball Months - Avalanche Months|
The difference between strategies depends on the spread of interest rates. The wider the spread, the more avalanche saves.
Example
3 debts: Card A $8,000 (18.99%), Card B $4,000 (24.99%), Car $15,000 (5.5%), budget $1,200/mo:
• Snowball：Order: Card B($4K) → Card A($8K) → Car($15K)
• Avalanche：Order: Card B(24.99%) → Card A(18.99%) → Car(5.5%)
• Total interest ~$2,970
• Time to debt-free: ~34 months
• With different rate spreads (e.g. car loan at 15%), avalanche could save hundreds.
❓ FAQ
Snowball vs avalanche: which debt payoff method is better?＋
Avalanche saves more interest mathematically. Snowball provides psychological wins that help you stay motivated. Choose what works for your personality.
How much should I budget for debt repayment?＋
After covering essentials, allocate as much as possible to debt. The 50/30/20 rule suggests 20% for debt and savings combined.
Should I use savings to pay off debt?＋
Keep a small emergency fund ($1,000), then use extra savings for high-interest debt (>10%). Don't drain your entire emergency fund.
How do I prioritize multiple debts?＋
List all debts with balances and interest rates. Pay minimums on all, then put extra toward the highest priority debt per your chosen strategy.
Will paying off debt hurt my credit score?＋
Paying off debt generally improves your score by lowering credit utilization. Closing accounts may temporarily lower your score.
What if I can't afford minimum payments?＋
Contact creditors immediately about hardship programs. Consider credit counseling. Avoid payday loans which create deeper debt cycles.
How long does debt payoff usually take?＋
It depends on total debt, interest rates, and monthly payments. Use our calculator to get a personalized timeline.
Is debt consolidation a good idea?＋
Consolidation can simplify payments and lower interest, but only if you address the underlying spending habits. Watch for balance transfer fees.