Debt Payoff Calculator

Avalanche vs. snowball: two ways to get debt-free

When you owe money on several debts, the order you attack them in changes how fast you finish and how much interest you pay. Two popular strategies dominate. The avalanche method targets the debt with the highest interest rate first while paying minimums on the rest. The snowball method targets the smallest balance first. In both cases, once one debt is cleared you roll its payment onto the next, so your repayment power grows as you go.

Which method saves the most money?

Mathematically, the avalanche method always wins. By killing your highest-rate debt first, you minimise the total interest charged, so you pay the least and often finish slightly sooner. If your only goal is to spend as little as possible, avalanche is the optimal choice, and this calculator shows you exactly how much it saves.

Which method is easier to stick with?

The snowball method wins on psychology. Clearing a small debt completely gives you a fast, visible win, and that momentum keeps many people motivated through a long payoff. Personal finance is as much about behaviour as math: the best plan is the one you will actually follow. If the interest-rate gap between your debts is small, the snowball's motivation can outweigh the avalanche's modest savings.

The power of an extra payment

Adding even a small fixed amount on top of your minimums each month has an outsized effect, because every extra dollar goes straight to principal and stops accruing interest. Use the extra-payment field above to see how much sooner you reach your debt-free date and how much interest you avoid. Always keep paying the minimum on every debt, since missed payments trigger fees and can damage your credit.

This tool is for general guidance and is not financial advice.