How to use this calculator
- For each debt, enter the balance, the APR and the minimum monthly payment. Debts 1 to 3 are always shown. Open Debt 4 and Debt 5 if you have more. Leave a balance at $0 to skip a debt.
- Enter the extra payment you can add each month on top of all the minimums.
- Choose a strategy: Avalanche targets the highest APR first; Snowball targets the smallest balance first.
- Under More options, set the start date. Your first payments are due one month later.
The results show your debt-free date, total interest, interest and time saved compared with paying only the minimums, and the order your debts are paid off. The chart tracks your total balance under avalanche, snowball and minimum payments, and the table lists the month each debt is cleared.
How the plan works
Both strategies keep your total monthly payment the same from start to finish: the sum of all your minimums plus your extra amount. Each month, the calculator:
- Adds a month of interest to each debt (its APR ÷ 12 × its balance).
- Pays the minimum on every debt that still has a balance.
- Sends everything left over to the target debt: the highest APR (avalanche) or the smallest balance (snowball). If that payment clears the debt, the rest spills over to the next target.
When a debt is paid off, its minimum isn’t dropped from your budget. It rolls into the payment on the next target, which is why the payoff speeds up over time.
For comparison, “minimum payments only” pays each debt its own minimum until that debt is gone, and nothing rolls over.
Worked example
Three debts and $200 extra a month:
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Debt 1 (credit card) | $5,000 | 24% | $150 |
| Debt 2 (store card) | $1,200 | 19% | $40 |
| Debt 3 (car loan) | $9,000 | 8% | $280 |
The total monthly budget is $150 + $40 + $280 + $200 = $670.
Avalanche goes after Debt 1 first (24%), then Debt 2, then Debt 3. Debt 1 is gone in month 17, Debt 2 in month 20 and Debt 3 in month 27. You’re debt-free in 2 years 3 months and pay $2,244 in interest.
Snowball goes after Debt 2 first (smallest balance). It’s gone in month 6, then Debt 1 in month 20 and Debt 3 in month 27. Same finish, but $2,321 in interest, $77 more than avalanche, because the 24% card waits a few extra months.
Minimum payments only takes 4 years 8 months and costs $4,926 in interest. The avalanche plan saves $2,682.
How much difference does the extra payment make?
For the same three debts:
| Extra each month | Avalanche: time | Avalanche: interest | Snowball: time | Snowball: interest |
|---|---|---|---|---|
| $0 | 3 years 7 months | $4,584 | 3 years 7 months | $4,585 |
| $100 | 2 years 8 months | $2,959 | 2 years 9 months | $3,057 |
| $200 | 2 years 3 months | $2,244 | 2 years 3 months | $2,321 |
| $300 | 1 year 11 months | $1,835 | 1 year 11 months | $1,896 |
| $500 | 1 year 6 months | $1,368 | 1 year 6 months | $1,409 |
Look at the first row: even with no extra money, simply rolling each paid-off minimum into the next debt finishes in 3 years 7 months instead of 4 years 8 months and saves about $342 compared with minimums only. Then every extra dollar shortens the timeline further. The difference between the two methods is small next to the difference the extra payment makes.
Choosing a strategy
- Choose avalanche if you want the lowest total cost and the rates on your debts differ a lot, for example a 25% credit card alongside a 6% car loan.
- Choose snowball if you have several small balances and quick wins will keep you going. Fewer bills also means fewer due dates to track.
- Whichever you choose, keep the total payment fixed. The method matters less than continuing to roll freed-up money forward instead of spending it.
- Stop adding new debt. The plan assumes balances only go down.
If a single credit card is the main problem, the credit card payoff calculator goes deeper into minimum-payment formulas. If you’re thinking about a consolidation loan, check its true APR with the personal loan calculator, and see how lenders view your overall debt load with the debt-to-income ratio calculator.
Assumptions and limitations
Interest is charged monthly at each debt’s APR ÷ 12, and minimum payments are fixed at the amounts you enter. In reality, credit card minimums usually fall as the balance falls, while installment loans like car loans keep a fixed payment. The calculator assumes no new charges, fees, promotional rates or rate changes, and on-time payments. Ties are broken sensibly: for avalanche, equal APRs go smallest balance first; for snowball, equal balances go highest APR first.
This calculator gives estimates for general information. It isn’t financial advice.
Frequently asked questions
What is the debt avalanche method?
You pay the minimum on every debt and put all extra money toward the debt with the highest interest rate. When it's paid off, its payment rolls to the next-highest rate. Because it attacks the most expensive debt first, it usually costs less interest than the snowball method.
What is the debt snowball method?
You pay the minimum on every debt and put all extra money toward the smallest balance first, regardless of rate. Each payoff frees up its payment for the next-smallest debt, so the payment you're throwing at debt keeps growing. The early wins can help you stay motivated, at the price of sometimes paying a bit more interest.
Which is better, avalanche or snowball?
Avalanche is cheaper on paper. Snowball can be easier to stick with because you clear whole debts sooner. In our example the difference is $77 over about two years, and both finish in the same month. If the gap is small for your debts, choose the method you're more likely to stick with.
What does "interest saved vs paying minimums" mean?
It compares your plan with paying only each debt's current minimum until that debt is gone, with no extra payment and no rolling freed-up payments to other debts. The difference in total interest is what your plan saves. In the example on this page, that's $2,682.
Should I pay off debt or build an emergency fund first?
Many people keep a small emergency fund while paying down debt, so an unexpected bill doesn't go back on a credit card. After that, extra money toward high-interest debt usually beats what savings would earn. Your own situation, including job security and any employer retirement match, matters too.
Why does each minimum payment need to be more than its interest?
If a debt's minimum doesn't cover the month's interest, the balance never goes down on minimum payments, and the comparison with "minimums only" breaks down. Real credit card minimums usually include the month's interest. If yours doesn't, enter a slightly higher payment you can commit to.
Updated November 2026. Results are estimates for educational purposes and depend on the inputs you provide.