Debt Payoff Calculator
This debt payoff calculator compares the debt snowball and debt avalanche methods for up to six debts. Enter each balance, rate and minimum payment plus any extra you can pay, and see how long each plan takes and how much interest it costs.
Result
Debt-free in 2 years 7 months
| Avalanche (highest rate first) | 2 years 7 months · $3,215.90 interest |
|---|---|
| Snowball (smallest balance first) | 2 years 7 months · $3,404.18 interest |
| Avalanche saves | $188.27 |
| Minimum payments only | 6 years 10 months · $8,405.64 interest |
| Avalanche payoff order | Credit card → Store card → Car loan |
| Snowball payoff order | Store card → Credit card → Car loan |
| Monthly payment (all debts) | $675.00 |
Assumes fixed rates, no new charges, and freed-up payments rolled into the next debt.
How the Debt Payoff Calculator Works
Both methods use the same monthly budget: all the minimum payments plus your extra amount. They differ only in which debt gets the extra money first.
| Method | Extra money goes first to | Strength |
|---|---|---|
| Snowball | Smallest balance | Debts disappear sooner, one by one |
| Avalanche | Highest interest rate | Usually the least total interest |
Each month, the calculator:
- Adds interest to each balance: balance × APR ÷ 12
- Pays the minimum on every debt still owed
- Puts everything left — your extra plus any freed-up minimums — on the next debt in the plan’s order
- Repeats until every balance is zero
It also shows the minimum-payments-only path for comparison, with no extra and no rollover.
Worked Example
Three debts, with $200 a month extra on top of $475 of minimums (a $675 monthly budget):
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Store card | $2,500 | 19% | $75 |
| Credit card | $6,000 | 24% | $150 |
| Car loan | $9,000 | 7% | $250 |
Snowball (smallest balance first): store card paid off in month 10, credit card in month 26, car loan in month 31. Total interest: $3,404.18.
Avalanche (highest rate first): credit card paid off in month 22, store card in month 26, car loan in month 31. Total interest: $3,215.90.
Both finish in 31 months; avalanche saves about $188 in interest. Paying only the minimums would take 82 months and cost about $8,405.64 in interest.
Tips for Using the Calculator
Keep your total payment the same
The methods work because freed-up minimums are put back to work. If you lower your total payment when a debt is paid off, the plan takes longer.
Stop adding new debt
The calculator assumes balances only go down. New charges on a card being paid off push the debt-free date back.
Check rates and minimums on your statements
Minimum payments on credit cards often fall as the balance falls; this calculator keeps them fixed, which is the same as continuing to pay the original amount. Promotional or variable rates also change the result.
Related calculators
For a single card, use the credit card payoff calculator. For one fixed-rate loan, try the loan calculator.
Frequently Asked Questions
What is the debt snowball method?
You pay the minimum on every debt and put any extra money toward the smallest balance first. When it's paid off, its payment rolls to the next-smallest balance, and so on. Quick early wins can help with motivation.
What is the debt avalanche method?
You pay the minimums on every debt and put the extra toward the debt with the highest interest rate first, then roll payments down to the next-highest rate. It usually costs the least interest.
Which is better, snowball or avalanche?
Avalanche normally saves more interest; snowball pays off individual debts sooner, which some people find easier to stick with. In the default example, avalanche saves about $188 of interest and both plans finish in 31 months. The calculator shows both side by side.
How much does paying extra help?
A lot. In the default example, $200 a month on top of $475 of minimums clears the debts in 31 months instead of 82, and cuts interest from about $8,406 to about $3,216 with the avalanche method.
What happens when a debt is paid off?
Its minimum payment is freed up and goes, along with your extra amount, to the next debt in the plan. Your total monthly payment stays the same until everything is paid off.
Why does the calculator say a plan will never finish?
If the payments don't cover the interest the debts are adding, the balances never reach zero. Increase the extra amount or the minimum payments.
Related Calculators
- Credit Card Payoff CalculatorMonths to pay off a card balance, or the payment needed to clear it.
- Loan CalculatorMonthly payment, total interest and amortization for any fixed-rate loan.
- Auto Loan CalculatorCar payment with trade-in, sales tax and fees included.
- Mortgage CalculatorFull monthly mortgage payment, including taxes, insurance and PMI.
Sources
- University of Kentucky Cooperative Extension, MoneyWise (January 2023) — debt repayment strategies including the snowball and avalanche methods
- Consumer Financial Protection Bureau — How does my credit card company calculate the amount of interest I owe?
- The calculator charges interest monthly at APR ÷ 12, keeps minimum payments fixed and assumes no new borrowing. Card issuers usually calculate interest daily, so results are estimates.
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