Debt Payoff Calculator: Avalanche vs Snowball Plans

The Avalanche method directs every extra dollar at the debt with the highest APR, while paying minimums on every other debt. Because interest charges scale with both balance and APR, attacking the highest APR first removes the most expensive interest from the plan. In the default scenario (Credit Card 22%, Personal Loan 11%, Auto Loan 6%) Avalanche targets the credit card and finishes the entire plan in 36 months with about $4,312 in interest.

The Snowball method directs every extra dollar at the smallest balance first, regardless of APR. Clearing the smallest debt quickly gives an early, visible win that behavioral studies link to higher follow-through. In the default scenario Snowball clears the $5,000 Personal Loan in about 16 months but pays roughly $661 more in total interest because the 22% credit card stays larger for longer.

If your only goal is to minimize total interest, Avalanche always wins or ties because it follows the math. If you are at risk of giving up on a long payoff plan, Snowball's early win can keep you on track and the extra interest may be worth the motivation. In the default scenario the cost of choosing Snowball is roughly $661, which is the price of the motivation boost.

APR is the Annual Percentage Rate that lenders publish; the calculator divides it by 12 to get the monthly rate it charges on the remaining balance. For example, 22% APR means 22% ÷ 12 = approximately 1.83% per month, so $8,000 of credit-card debt at 22% accrues about $147 in interest in the first month alone.

The minimum payment is the smallest amount you must send each month to keep the account in good standing. In this calculator the minimum is treated as a fixed dollar amount and is always paid first; any leftover budget plus your extra payment then flows to the focus debt under your strategy. If a debt's balance falls below the minimum, the calculator pays only the remaining balance and the leftover rolls over to the focus debt.

The extra monthly payment is the amount you can put toward debts on top of the required minimums. It is the single most powerful lever in any debt payoff plan: in the default scenario, doubling the $200 extra to $400 typically cuts both payoff time and interest by more than half. Strategy choice matters far less than how much extra cash you direct at debt each month.

When a debt is fully paid off, its minimum payment is not removed from your debt budget. It is rolled onto the next focus debt on top of the existing extra. This is the engine that makes both Avalanche and Snowball finish much faster than paying only minimums. In the default scenario, after the credit card clears under Avalanche, its $200 minimum plus the $200 extra ($400 total) starts attacking the next-highest-APR debt.

The balance chart plots the total outstanding balance across all your debts month by month, for both strategies on the same axis. The line that reaches zero first is the strategy that finishes sooner. In the default scenario the Avalanche line reaches zero around month 36 and the Snowball line around month 37, close in time, but the area under each line (the lifetime interest exposure) is meaningfully different.

The schedule lists every month from start to payoff with the total payment, the interest charged, the principal paid, the total balance, and the remaining balance on each individual debt. It lets you see exactly when each debt clears and which debt the strategy is attacking at any point. Rows where a debt has reached zero show an em-dash in that debt's column.

If a debt's minimum payment is smaller than the interest accruing on it, the balance grows each month and the simulation cannot finish payoff within 50 years. The calculator flags that result with a 'not payable' warning. The fix is either to increase the extra payment, raise the minimum (call the lender), or restructure the debt. No strategy works without enough cash flow.

No. All amounts are pre-tax and ignore the deductibility of certain types of interest (such as US mortgage interest under itemized deductions or student loan interest below income limits). For debts where part of the interest is deductible, the effective APR is lower than the stated rate, which can affect which debt your real-world avalanche should target.

They tie when the highest-APR debt is also the smallest balance, because both strategies then pick the same debt to attack first. If a later step in the plan also has matching balance and APR ordering, the entire payoff can be identical. In that case the recommendation badge displays 'Tie' and any choice is equally good.

No. This debt payoff calculator is for informational and planning purposes only and does not constitute financial, tax, legal or credit advice. Actual debt terms, fees and tax treatment vary by lender and jurisdiction. Always consult a qualified financial adviser or credit counselor before making decisions involving real consumer debts.