This debt payoff calculator compares the two most popular ways to clear several debts: the avalanche and the snowball method. Enter each debt and how much extra you can pay, and see your debt-free date, total interest and the order debts are paid off.
| Debt name | Balance | APR % | Min. payment |
|---|---|---|---|
Avalanche vs snowball
Avalanche: pay the minimum on everything, and put every extra dollar toward the debt with the highest interest rate. This saves the most interest.
Snowball: pay the minimum on everything, and put the extra toward the smallest balance first. You clear individual debts sooner, which many people find motivating.
In both, when a debt is paid off, its minimum payment rolls into the next target.
Worked example
With the sample debts (a $4,000 card at 24%, a $1,500 card at 19% and a $9,000 car loan at 7%) and $200 extra a month ($615 in total), both plans clear everything in 2 years 3 months. The avalanche method costs about $1,910 in interest against $1,993 for the snowball, saving about $84, while the snowball pays off the first card 8 months sooner.
Frequently asked questions
Which method should I choose?
Avalanche is cheaper. Snowball can be easier to stick with. If the difference in interest is small, choose the one you are more likely to follow.
Does it include new spending?
No. It assumes you stop adding to the debts while paying them off.