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Debt Payoff Calculator

Avalanche vs snowball: months saved and interest avoided.

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Debt-free with the avalanche method

43 mo

2 debts · $16,500 balance · $100/mo extra · 3.6 years
Avalanche interest
$3,560
Snowball
43 mo

$3,560 interest

Avalanche saves
$0

interest vs snowball

Paying $470/mo (minimums + $100 extra) and aiming every spare dollar at the highest APR clears $16,500 in 3.6 years.

Try a what-if

Avalanche (highest APR first)

Payoff

43 mo (3.6 yr)

Total interest

$3,560

Order: Visa → Auto loan

Snowball (smallest balance first)

Payoff

43 mo (3.6 yr)

Total interest

$3,560

Order: Visa → Auto loan

Your debts

$100 / month

Just one debt? Payoff date for a single balance

$5,000

22.00% APR

$150

Payoff in
52 mo
Total interest
$2,798
Total paid
$7,798

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Next steps

The Debt Payoff Calculator runs the avalanche and snowball methods side-by-side on your real debts, then shows exactly how many months and how much interest each one saves you. Most articles only describe these two strategies in the abstract — this tool lets you see which one mathematically wins for YOUR mix of balances and APRs, and how much faster a fixed extra payment finishes you off either way.

How this calculator works

  1. List each debt with its current balance, APR, and minimum payment. Add as many as you have — credit cards, personal loans, student loans, medical debt.
  2. Set the extra monthly amount you can put toward debt above the sum of minimums. Even $100/mo significantly compresses the timeline.
  3. Compare the two strategies. Avalanche orders by highest APR first — mathematically cheapest. Snowball orders by smallest balance first — psychologically motivating because you eliminate accounts faster.
  4. Read the months-saved and interest-saved numbers for each strategy. Pick the one that fits your personality; even the 'slower' option is dramatically better than minimum-only.

monthly: interest = balance × (APR/12); balance ← balance + interest − payment

Debt payoff is iterative, not a single closed-form formula. Each month: interest accrues on the current balance, then the payment is applied (covering interest first, principal second). Repeat until balance hits zero. Avalanche and snowball just choose which debt gets your 'extra' dollars in each step.

balance
Outstanding principal at the start of the month
APR
Annual percentage rate (the lender's quoted rate)
payment
Total monthly payment (minimum + any extra you direct here)

Frequently asked questions

What is the difference between the avalanche and snowball methods?

Avalanche pays the highest-interest debt first to save the most money. Snowball pays the smallest balance first for faster motivational wins. Avalanche is mathematically cheaper; snowball is psychologically easier.

Should I pay off debt or invest first?

If a debt charges more than about 7% interest, paying it off usually beats expected investment returns. Below that, splitting between debt payments and investing is reasonable.

Will paying off debt hurt my credit score?

No. Paying down balances lowers your credit utilization, which typically improves your score over time.

Sources used in this calculator

This calculator uses only the numbers you enter — no outside rates or tables. The formula it applies is shown above.

Reviewed by the Money Scale editorial team. How we source our data

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