Finance Calculators
Debt Payoff Calculator
Compare the snowball and avalanche methods to see which pays off your debt fastest and saves the most interest.
Debt Payoff Calculator
Compare the snowball and avalanche methods to see which pays off your debt fastest.
This calculator is for educational estimates only and is not financial advice.
Avalanche Payoff Plan
(2 yr 8 mo)
Payoff order:
- Credit Card 1 — paid off in month 18
- Credit Card 2 — paid off in month 26
- Personal Loan — paid off in month 32
This calculator is for educational estimates only and is not financial advice. Actual lender terms may vary.
Snowball vs avalanche: which is right for you?
The snowball method prioritizes quick psychological wins by eliminating smaller debts first, which can keep you motivated. The avalanche method prioritizes mathematical efficiency by attacking the highest-rate debt first, which saves the most money. Both work — the best method is the one you stick with. This calculator shows both results so you can choose.
Frequently asked questions
- What is the debt snowball method?
- The snowball method targets your smallest balance first. You pay minimums on everything and put all extra money toward the smallest debt. Once it is paid off, you roll that payment into the next-smallest balance, creating a snowball effect. It is motivating because you see quick wins.
- What is the debt avalanche method?
- The avalanche method targets your highest-interest debt first. You pay minimums on everything and put all extra money toward the debt with the highest APR. Mathematically, this saves the most interest over time, though it may take longer to feel progress if your highest-rate balance is also your largest.
- Which method pays off debt faster?
- The avalanche method always saves more interest, but the total payoff timeline depends on your balances and rates. This calculator runs both methods side by side so you can see the exact difference for your debts.