Debt Payoff Calculator (Snowball vs Avalanche)
Debt Payoff Calculator (Snowball vs Avalanche): Add your debts with their balances, interest rates and minimum payments, then set a monthly budget to compare the snowball (smallest balance first) and avalanche (highest rate first) payoff strategies side by side.
Data as of 2026-06-14.
Estimates only — for general education, not financial advice. See our disclaimer.
The formula
Snowball: order by smallest balance · Avalanche: order by highest APR
Both methods pay every debt's minimum, then funnel the leftover budget into one target debt. The snowball targets the smallest balance first (fast wins); the avalanche targets the highest APR first (least interest). We simulate month by month until every balance reaches zero.
How it works
- The avalanche (highest APR first) always costs the least interest mathematically.
- The snowball (smallest balance first) clears whole debts faster, which many people find more motivating.
- Every extra dollar above your minimums goes to one debt at a time — that's the 'debt stacking' effect.
- Increasing your monthly budget shortens both timelines dramatically; even small increases compound.
Frequently asked questions
What's the difference between the snowball and avalanche methods?
The debt snowball pays off the smallest balance first for quick psychological wins; the debt avalanche pays off the highest interest rate first to minimize total interest. Both pay minimums on everything else. See snowball vs avalanche.
Which debt payoff method is cheaper?
The avalanche method is always at least as cheap as the snowball because it eliminates the most expensive interest first. The difference can be small or large depending on your balances and rates — this calculator shows both.
Why would anyone choose the snowball method?
Behavioral research suggests that closing entire accounts early builds momentum and improves the odds of sticking with the plan. If the interest difference is small, the motivation boost can be worth more than the savings.
How much do I need to budget each month?
At minimum, the sum of all your minimum payments — the calculator warns you if your budget is below that. Anything extra accelerates payoff. This is an estimate for education, not financial advice.
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Last updated: 2026-06-14