Debt Payoff Calculator

Both pay the minimum on every debt and throw all spare money at one target debt. The Avalanche method targets the highest interest rate first, which is mathematically the cheapest and fastest route to debt-free. The Snowball method targets the smallest balance first, which clears individual debts sooner and gives motivating early wins. This calculator runs both on your actual debts so you can see the real trade-off.

Avalanche always costs the same or less in total interest, because it kills your most expensive debt fastest. Snowball can cost slightly more but has strong behavioral evidence behind it: clearing a whole debt early builds momentum and reduces the chance you give up. If the interest difference is small, the motivation of Snowball often wins; if you have one high-rate credit card, Avalanche can save a meaningful amount.

Each month the calculator accrues interest on every balance (APR ÷ 12), pays each debt's minimum, then applies your remaining budget to the priority debt for the chosen strategy. When a debt is cleared, its freed-up minimum payment rolls into the budget, and this rollover is what speeds up payoff over time. It repeats month by month until every balance hits zero.

If your monthly budget only covers the minimums (or less), high-interest balances can grow faster than you pay them down and you never become debt-free. Any amount above the combined minimums is what actually reduces what you owe and shortens your timeline, and even a modest extra amount makes a big difference over time.