Debt Payoff Calculator
Compare Snowball (smallest balance first) and Avalanche (highest APR first) payoff strategies across all your debts. See months to debt-free and total interest saved.
Your debts
Total balance over time
When you have several debts and a fixed budget, the order in which you pay them off changes how much you spend on interest. This calculator simulates two popular strategies side-by-side and recommends the cheaper one for your specific mix of debts.
Snowball: pay minimums on every debt, then throw all extra money at the smallest balance. Once that's gone, roll the freed-up payment into the next smallest. The win is psychological — fast early victories build momentum.
Avalanche: pay minimums on every debt, then throw all extra money at the highest APR. Mathematically optimal for total interest paid, but the first debt may take a long time to clear if it's also the largest.
How to use
- Add your debts (start with the three sample debts as a template). For each, enter the name, current balance, APR, and required minimum monthly payment.
- Set the extra payment you can put toward debt each month above the sum of the minimums.
- Both strategies are simulated month-by-month, applying minimums to all debts and the extra to the target debt for that strategy.
- Compare months to debt-free and total interest paid. The recommendation card highlights the cheaper strategy for your specific mix of debts.
Frequently asked questions
- What's the difference between Snowball and Avalanche?
- Both pay minimums on every debt and put extra cash toward one specific debt at a time. Snowball targets the smallest balance — fast early wins, but you may pay more interest. Avalanche targets the highest APR — mathematically cheaper, but the first debt may take a long time to clear.
- Which strategy is actually best?
- Avalanche is mathematically optimal — by definition it minimises total interest. But Snowball is sometimes psychologically better: a few quick wins build momentum and reduce the chance you'll give up. The savings difference is often small. The tool shows you both numbers so you can decide on the trade-off.
- What if my budget can't cover all the minimums?
- The tool will warn you. In that case, neither strategy works — you need to either find more money each month or restructure your debt (consolidation loan, balance transfer, debt settlement). Talk to a non-profit credit counsellor if you're stuck.
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