Debt Payoff Planner
Compare the snowball and avalanche debt payoff strategies and see which clears your debt faster.
Calculators on this site provide estimates for general informational purposes only. They are not financial, investment, tax, or legal advice. Consult a qualified professional before making any decision.
About this calculator
Two popular strategies for paying off multiple debts faster. Both throw every spare dollar at debt, but they differ in which debt goes first.
Snowball method
Pay the minimum on everything, then put extra money toward the smallest balance first. You win quick psychological wins as balances disappear.
Avalanche method
Pay the minimum on everything, then put extra money toward the highest interest rate first. This minimizes total interest paid and is usually the cheaper path mathematically.
How the payoff is computed
Each month, interest accrues on every balance, then your payment covers interest plus principal. Any leftover after minimums is applied to the target debt until it is zero, and the freed-up payment rolls into the next debt.
Tip
Use the results to compare total interest and months saved between the two methods for your exact debts.
How to use Debt Payoff Planner
- 1List each debt with its current balance, minimum payment, and interest rate.
- 2Choose a strategy: snowball (pay smallest balance first) or avalanche (pay highest interest first).
- 3Enter any extra monthly amount you can add above the minimums, then review the estimated payoff date and total interest.
Snowball vs avalanche payoff strategy
Monthly surplus = extra_payment + minimums_of_paid_off_debtsThe snowball method gives quick wins by clearing the smallest debt first, which can help maintain motivation.
The avalanche method minimizes total interest by attacking the highest-rate debt first, saving money mathematically.
Both methods use the same core idea: once a debt is gone, redirect its payment to the next target debt.
Frequently asked questions
Which method saves more money?
Avalanche usually saves more interest overall, but snowball may be easier to stick with if motivation is a challenge.
Should I stop saving while paying off debt?
Keep a small emergency fund first; then direct extra cash toward high-interest debt before long-term investing.
Does this calculator include fees or penalties?
No; it uses balance, rate, and payment only. Check your loan terms for prepayment penalties.
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