What's the difference between snowball and avalanche?

Snowball pays off the smallest balance first for quick wins and motivation. Avalanche targets the highest interest rate first and saves more money over time. Mathematically, avalanche is optimal — but snowball's psychological wins help many people stay on track.

How much extra should I pay toward my debt?

Even $100-200 extra per month makes a significant difference. On $20,000 of credit card debt at 22%, an extra $200/month saves over $5,000 in interest and gets you debt-free 2+ years faster. Use the calculator to see the impact of different extra payment amounts.

Should I pay off debt or invest?

Compare your debt's interest rate to expected investment returns. If your debt charges 22% (credit cards), pay it off first — no investment reliably returns 22%. If your debt is 4-5% (student loans, mortgage), you might invest instead, especially if you have an employer 401(k) match.

Does this calculator account for minimum payment changes?

This calculator uses fixed minimum payments. In reality, some lenders reduce minimums as your balance drops, which extends payoff time. For the most accurate estimate, use your current minimum payments and commit to keeping them at that level even as balances decrease.

Debt Payoff Calculator

Find your debt-free date — snowball or avalanche, with extra payments.

Your debts

Debt 1

Name

Balance

Interest rate

Minimum payment

Debt 2

Name

Balance

Interest rate

Minimum payment

Extra monthly payment (above minimums)

Extra goes to smallest balance first

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Snowball pays smallest balance first (motivation). Avalanche pays highest rate first (saves money).

How to Use This Calculator

Enter your debts

Add each debt with its name (e.g., "Credit Card," "Car Loan"), current balance, interest rate (APR), and minimum monthly payment. You can add as many debts as you need — the calculator handles them all.

Choose a payoff strategy

Select Snowball (pay off the smallest balance first for quick wins) or Avalanche (pay off the highest interest rate first to save the most money). The calculator shows you a side-by-side comparison of both methods.

Set your extra payment

Enter any extra monthly payment you can put toward debt beyond the minimums. Even $50–$100 extra per month can shave years off your payoff timeline and save thousands in interest.

Share your result

Every input is encoded in the URL. Click Share, send the link — they'll see your exact numbers. No re-entering, no screenshots.

The Formula

Both strategies follow the same monthly loop — they only differ in which debt gets the extra payment.

Snowball method

Line up debts from smallest balance to largest. Pay minimums on everything, then throw all extra money at the smallest debt. Once it's gone, roll that payment into the next smallest. The quick wins keep you motivated.

Avalanche method

Line up debts from highest interest rate to lowest. Pay minimums on everything, then direct all extra money at the highest-rate debt. This minimizes total interest paid — the mathematically optimal approach.

Each month, for every debt:
New Balance = Previous Balance × (1 + Monthly Rate) − Payment

Monthly Rate = Annual Rate ÷ 12
Extra payment goes to the target debt (smallest balance or highest rate)

Example

Jessica — tackling three debts with $200 extra/month

Jessica has three debts and can put an extra $200/month toward payoff. Here's how each strategy works.

Her debts

Credit Card$5,000 at 22.0% APR — $150/mo min

Car Loan$12,000 at 6.5% APR — $280/mo min

Student Loan$25,000 at 5.0% APR — $265/mo min

Snowball (smallest balance first)

Target orderCredit Card → Car Loan → Student Loan

Credit Card paid off~16 months

All debt free~48 months

The credit card disappears quickly, giving Jessica a motivational boost and freeing up $350/mo to attack the car loan.

Avalanche (highest rate first)

Target orderCredit Card (22%) → Car Loan (6.5%) → Student Loan (5%)

Total interest saved vs Snowball~$400–$600

All debt free~47 months

In Jessica's case, both methods start with the credit card (it's both the smallest balance and the highest rate). The avalanche pulls ahead on the remaining debts, saving several hundred dollars in total interest.

FAQ

Snowball vs. Avalanche — which is better? ▼

Avalanche saves more money in interest — it's the mathematically optimal strategy. Snowball costs slightly more but delivers faster emotional wins by eliminating small debts quickly. Research shows people using the snowball method are more likely to stick with their plan. The best method is the one you'll actually follow. If motivation is your challenge, go snowball. If you're disciplined and want to minimize cost, go avalanche.

How much extra should I pay each month? ▼

Any amount helps. Even $50 extra per month can cut years off your payoff timeline. A good starting point: look at your budget for subscriptions or expenses you can temporarily cut, and redirect that money toward debt. The calculator lets you experiment — try different extra amounts to see how they affect your payoff date and total interest paid.

Should I consolidate my debts instead? ▼

Consolidation makes sense if you can get a lower interest rate than your current weighted average. A balance transfer card (0% intro APR) or a personal loan at a lower rate can save money — but only if you stop adding new debt. Watch out for balance transfer fees (typically 3–5%) and make sure the new monthly payment fits your budget. If your rates are already low, the snowball or avalanche method may work just as well without the fees.

What happens if I only make minimum payments? ▼

Minimum payments are designed to keep you in debt longer. On a credit card with a high APR, most of your minimum payment goes toward interest — barely touching the principal. A $5,000 balance at 22% with a $150 minimum payment takes over 4 years to pay off and costs roughly $2,500 in interest. Adding even a small extra payment breaks this cycle and dramatically reduces both time and total cost.

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