Debt Payoff Calculator — Snowball vs Avalanche
Two proven ways to clear debt: snowball attacks the smallest balance first for quick wins; avalanche attacks the highest rate first to save the most interest. Run both on your debts.
How it works
Each month: interest accrues on every balance at APR ÷ 12, minimum payments are made on all debts, and the extra payment plus any freed minimums attack one target debt — smallest balance first (snowball) or highest APR first (avalanche) — until every balance is zero.
Example: A $5,000 at 20% (min $100), B $3,000 at 10% (min $75), C $10,000 at 15% (min $200), plus $300 extra: snowball clears everything in 34 months with $4,356.24 interest; avalanche in 33 months with $3,908.86 interest — avalanche saves $447.38 here.
Frequently asked questions
Which method should I choose?
Avalanche saves the most money. Snowball wins on motivation: clearing a small debt fast keeps people going. The best method is the one you stick with.
Do I stop paying minimums on other debts?
Never. Minimums are paid on every debt every month; only the extra money is aimed at one target.
What if a minimum payment does not cover the interest?
Then that debt grows even while you pay it. Raise the payment, or that debt must become the first target regardless of method.
Should I pause retirement saving to pay debt?
Only for very high-rate debt. Employer-matched retirement contributions usually beat paying off low-rate debt early.