Debt Payoff Calculator
List your debts, add what you can pay each month, and compare the debt snowball and debt avalanche methods. See your debt-free date, total interest and the order your debts will be paid off.
Assumes fixed rates, no new charges and that each freed-up minimum payment rolls to the next debt.
Snowball vs. avalanche for your debts
Both methods use the same monthly budget. Only the order changes.
| Method | Debt-free in | Total interest | First debt paid off |
|---|
Your payoff order
The month each debt is paid off with the method selected above.
| Order | Debt | Paid off | Interest paid |
|---|
How the snowball and avalanche methods work
Both strategies follow the same three rules. The only difference is which debt you target first.
- Pay the minimum on every debt, every monthall debts
- Put every extra dollar toward one target debttarget
- When it is paid off, roll its payment into the next targetroll over
Avalanche targets the debt with the highest interest rate first. Because the most expensive balance shrinks fastest, it almost always costs the least in total interest.
Snowball targets the smallest balance first. You clear individual debts sooner, which frees up payments and gives you visible progress. Many people find those early wins make it easier to keep going.
The calculator runs month by month: it adds each debt's interest (APR ÷ 12, rounded to the cent), pays each minimum, sends the rest of your budget to the current target and repeats until every balance reaches zero.
Worked example: four debts, $200 extra
These are the calculator's starting numbers, a total of $23,500 across four debts with $655 in combined minimum payments:
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Card A | $5,000 | 22% | $150 |
| Card B | $2,500 | 27% | $75 |
| Car loan | $12,000 | 7% | $300 |
| Personal loan | $4,000 | 12% | $130 |
Paying $855 a month, the minimums plus $200 extra:
- Avalanche: debt-free in33 months
- Avalanche: total interest$3,888.34
- Snowball: debt-free in33 months
- Snowball: total interest$4,074.60
- Minimums only, with roll-over: 47 months$7,113.17
The avalanche saves about $186 here, while the snowball pays off the personal loan in month 19 instead of month 26. Both beat paying minimums only by more than a year and about $3,000 in interest. The biggest win comes from the extra $200 and the roll-over, whichever order you choose.
Tips to get out of debt faster
- Stop adding new debt. New charges push every payoff date back.
- Automate your payments. Set up autopay for the minimums and a fixed transfer for the extra amount.
- Lower your rates where you can. A balance transfer or a lower-rate consolidation loan reduces interest, but check fees and promotional end dates.
- Put windfalls to work. Tax refunds, bonuses and raises can go straight to the target debt.
- Keep a small emergency fund. A cash buffer stops a surprise bill from going back on a card.
For a single credit card, the Credit Card Payoff Calculator shows the payoff date and a year-by-year breakdown.
Frequently asked questions
What is the difference between the debt snowball and debt avalanche?
Both methods pay the minimum on every debt and put all extra money toward one target debt. The avalanche targets the highest interest rate first, which usually saves the most interest. The snowball targets the smallest balance first, which clears individual debts sooner and can help you stay motivated.
Which is better, snowball or avalanche?
The avalanche method costs less in interest, while the snowball method gives faster early wins. The gap is often small when balances and rates are similar. The best method is the one you will stick with until every debt is paid.
What does rolling over minimum payments mean?
When a debt is paid off, the minimum payment you were making on it is added to the payment on your next target debt. Your total monthly budget stays the same, but more of it goes toward principal as each debt disappears.
How much faster will I be debt-free with extra payments?
It depends on your balances and rates. In this calculator's example of four debts totaling $23,500, paying $200 a month above the minimums with the avalanche method clears everything in 33 months instead of 47 and cuts interest from $7,113 to $3,888.
Should I include my mortgage?
Most people leave out the mortgage because it is large, long-term and usually low-rate. Snowball and avalanche plans work best for consumer debts such as credit cards, personal loans, car loans and medical bills.
This calculator is for educational purposes only and is not financial advice. Results assume fixed interest rates, on-time payments and no new charges or fees. Your lenders may calculate interest and minimum payments differently.