🎯 Debt Payoff Calculator
Compare the Snowball and Avalanche methods side by side.
How This Works
Snowball: Pay minimums on everything, then put all extra payment toward the debt with the smallest balance. Once it's paid off, roll that entire payment into the next-smallest debt.
Avalanche: Same approach, but target the debt with the highest interest rate first instead of the smallest balance. This minimizes total interest paid over time.
Frequently Asked Questions
Which method should I choose?
If you stay motivated by quick wins, Snowball may help you stick with the plan. If you're disciplined and
want to minimize total interest, Avalanche is mathematically better.
Guide: understanding your result
- Avalanche: pay minimums on everything and send extra money to the highest-APR debt — mathematically the lowest total interest.
- Snowball: send extra money to the smallest balance first — the quickest early wins.
- Either way, the biggest factor is the total amount you pay each month.
Worked example
Three debts — a card at 24% ($4,000), a card at 18% ($2,500) and a car loan at 7% ($9,000) — with $750 a month in total payments. The avalanche order is 24% → 18% → 7%; the snowball order is $2,500 → $4,000 → $9,000. Use the calculator above with your own balances to see the difference in months and interest for each order.
Common mistakes to avoid
- Stopping the extra payment once the first debt is paid instead of rolling it into the next one.
- Skipping an emergency buffer, which can push new spending back onto cards.
Official sources
Examples are calculated live from the same data the calculator uses and are for education only — they are not financial, tax or investment advice.
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