Debt Payoff Strategy Calculator (Avalanche vs Snowball)
| Debt | Balance ($) | APR (%) | Minimum ($/mo) | Remove |
|---|---|---|---|---|
On top of all the minimums. Both methods pay the same total every month.
Avalanche vs snowball
$22,000 across 4 debts · minimums $630/mo · with extra $930/mo
| Plan | Debt-free in | First debt gone | Total interest |
|---|---|---|---|
| Minimum payments only | 4 years, 10 months | month 37 | $8,289 |
| Avalanche: highest APR first | 2 years, 4 months | month 4 | $3,521 |
| Snowball: smallest balance first | 2 years, 4 months | month 4 | $3,928 |
The avalanche saves $407 of interest over the snowball. Either way, the extra $300 a month saves about $4,768 compared with paying minimums.
- Avalanche order:
- Store card (month 4) → Credit card (month 18) → Personal loan (month 22) → Car loan (month 28)
- Snowball order:
- Store card (month 4) → Personal loan (month 13) → Credit card (month 22) → Car loan (month 28)
Total balance over time
Months across.
Minimums are held fixed. A real credit card minimum shrinks as the balance falls (often 1% of the balance plus interest), which makes paying only minimums take far longer than shown. Interest is charged monthly at APR ÷ 12; balance transfer offers, fees and rate changes are not included.
Compare the debt avalanche (extra money to the highest APR first) with the debt snowball (smallest balance first) on your own debts. See your debt-free date, total interest, the order the debts are paid off and when the first account closes, against paying only the minimums.
Formula
Worked Example
Both methods pay $930 a month and finish in the same month, but the avalanche saves $407 by clearing the 24.99% card before the 12.5% personal loan. The snowball pays off the personal loan sooner, in month 13 rather than 22, but leaves the 24.99% card for later. Either way the extra $300 a month saves about $4,768 of interest.
Frequently Asked Questions
Which is better, the debt avalanche or the debt snowball?
The avalanche never costs more interest, because each extra dollar goes to the most expensive debt. The snowball closes accounts sooner, which many people find easier to stick with. When the smallest debt also has the highest rate the two are identical; the gap grows with large, high-rate balances.
What happens to a minimum payment once that debt is paid off?
In both methods it rolls over: the total monthly payment stays the same, so the freed-up minimum is added to the next debt in line. That rollover is what makes the payoff accelerate toward the end.
Should extra money go to debt or to investing?
Paying off a 25% credit card is a guaranteed 25% return, which no investment reliably beats. Keep a small emergency fund and take any employer 401(k) match first; after that, high-interest debt usually comes before investing, while low-rate debt such as a 3% mortgage can reasonably be paid on schedule.
Common Mistakes
- !Lowering the total payment each time a debt is paid off instead of rolling the freed-up minimum into the next one.
- !Judging minimum-only payoff with a fixed minimum: real credit card minimums shrink with the balance, which stretches the payoff over many more years.