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Debt Payoff Calculator

Updated January 2026

A debt payoff calculator compares the snowball and avalanche methods side by side. See which strategy gets you debt-free faster and saves you the most money on interest.

How to Use This Calculator

Enter up to three debts with each debt's balance, APR, and minimum monthly payment. Add any extra amount you can put toward debt repayment each month. Click Calculate to see a side-by-side comparison of the snowball and avalanche methods, including months to debt-free, total interest paid, and payoff order.

How It's Calculated

The calculator sorts debts differently for each method:

Snowball: Sort by balance ascending (smallest first)

Avalanche: Sort by APR descending (highest interest first)

In both methods, minimum payments are made on all debts, and any extra money is applied to the first target debt. When one debt is paid off, its full payment rolls to the next target. The avalanche method always minimizes total interest paid, while snowball provides faster psychological wins.

Frequently Asked Questions

The snowball method prioritizes debts by smallest balance first — you pay minimums on everything and throw extra money at the smallest debt until it's gone, then roll that payment to the next smallest. The avalanche method prioritizes by highest interest rate first — mathematically, this saves the most money in total interest. Snowball is better for motivation (quick wins), while avalanche is mathematically optimal (lowest total cost).
The avalanche method always saves the most money because it targets the highest-interest debt first, minimizing total interest paid. However, the difference can be small if your debts have similar interest rates. For example, on three debts totaling $15,000, avalanche might save a few hundred dollars compared to snowball over the repayment period. The best method is ultimately the one you'll stick with consistently.
The snowball method is generally more motivating because you get quick wins — paying off smaller debts first gives you a psychological boost and a sense of progress. Seeing a debt eliminated entirely can be incredibly satisfying and keeps you motivated to continue. Many people, including financial experts like Dave Ramsey, recommend snowball for this reason. The best method is whichever one you'll actually follow through on consistently.
Start by listing all your debts with balances, interest rates, and minimum payments. Choose a method (snowball or avalanche) and decide how much extra you can put toward debt each month. Commit to paying the minimum on all debts, then put all extra money toward the first target debt. When it's paid off, roll its full payment (minimum + extra) to the next target. Track your progress — seeing the balances drop is powerful motivation.

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