Debt Payoff Calculator - Avalanche vs Snowball Plan with Payoff Date
Plan your debt payoff
| Debt | Balance | APR % | Minimum payment | |
|---|---|---|---|---|
Payoff order
Interest is compounded monthly at the APR; payments are assumed to arrive on time with no new charges.
Avalanche or snowball: which debt to pay first
When you owe money in several places, the order you pay matters. The avalanche method sends every spare unit to the highest-interest debt and costs the least overall; the snowball method clears the smallest balance first and gives quick wins that keep people going. This calculator runs both, month by month, and shows the date you are free and what each path costs.
Steps
- 1 Enter each debt with its current balance, annual interest rate and minimum monthly payment. Add as many rows as you have debts.
- 2 Type the extra amount you can put towards debt each month beyond the minimums — even a small number changes the result.
- 3 Switch between avalanche and snowball to compare the payoff date, total interest and the order in which debts disappear.
How the rollover works
Every month each debt accrues interest and receives its minimum payment. The extra payment goes to the target debt. When a debt is paid off, its minimum payment does not disappear from your budget — it rolls into the extra and attacks the next target. That rollover is why both methods finish far sooner than paying minimums alone, where every cleared debt simply lowers what you pay.
Avalanche: the cheapest path
Ordering by interest rate minimises the total interest you pay, mathematically and without exception. If two debts have the same rate the smaller balance goes first. Choose avalanche when the numbers motivate you and the rates differ a lot — a 26% store card next to a 7% car loan is a clear case.
Snowball: the fastest first win
Ordering by balance clears the first debt in weeks or a few months, and that visible progress is what keeps many people on the plan. It usually costs somewhat more interest and sometimes a month or two more; the comparison line shows exactly how much. If the difference is small, the method you will stick to is the better one.
When the payments do not cover the interest
If a minimum payment is lower than the monthly interest on that debt, the balance grows instead of shrinking, and no ordering can fix it. The calculator stops after 600 months and tells you the plan stalls. The remedy is a higher payment, a lower rate through refinancing or a balance transfer, or both.