How to use this calculator
Add each of your debts with the current balance, annual interest rate, and minimum monthly payment. Then enter how much extra you can pay each month above your total minimums.
The calculator simulates both the snowball and avalanche strategies month by month. It shows the total interest paid, payoff timeline, and the order each debt gets eliminated for both methods side by side.
Snowball vs. Avalanche
Avalanche method: Extra payments target the debt with the highest interest rate first. Once that debt is gone, its minimum payment rolls into the next highest-rate debt. This approach minimizes total interest paid over the life of all your debts.
Snowball method: Extra payments target the debt with the smallest balance first, regardless of interest rate. You get a quick psychological win when the first debt disappears, and freed-up minimums accelerate payoff of each successive debt.
Both methods require making minimum payments on all debts every month. The only difference is where your extra money goes. For most people, the interest savings from avalanche are modest compared to the motivational benefit of snowball, but run your own numbers above to see which works best for your situation.
Tips for paying off debt faster
Negotiate lower rates: Call each creditor and ask for a rate reduction. Even a 2-3% decrease on a credit card saves meaningful money over time.
Use windfalls wisely: Apply tax refunds, bonuses, and cash gifts directly to your priority debt. A single $1,000 lump sum on a 20% credit card saves $200+ per year in interest.
Consider balance transfers: A 0% intro APR balance transfer card can pause interest accumulation for 12-18 months, letting every dollar go straight to principal. Watch for transfer fees (typically 3-5%).
Avoid new debt: A payoff plan only works if you stop adding to your balances. Remove saved cards from online stores and use cash or debit for daily spending while paying down existing debt.
Frequently asked questions
What is the difference between the snowball and avalanche methods?
The snowball method pays off debts from smallest balance to largest, giving you quick psychological wins. The avalanche method targets the highest interest rate first, saving you the most money in total interest. Both methods make minimum payments on all debts and direct any extra money to one priority debt at a time.
Which debt payoff method saves the most money?
The avalanche method always saves the most money because it eliminates the most expensive debt first. However, the difference is sometimes small. The snowball method can be more effective in practice because the quick wins help people stay motivated and actually follow through on their plan.
How much extra should I pay toward my debt each month?
Any extra amount helps, but even $50-$100 above your minimums can make a significant difference. Use the calculator above to see the exact impact. The key is choosing an amount you can sustain consistently, a smaller amount paid every month beats a large amount you can only manage occasionally.
Should I pay off debt or save money first?
Most financial experts recommend building a small emergency fund ($1,000-$2,000) first, then aggressively paying off high-interest debt (above 7-8%). For low-interest debt, you may benefit from investing while making regular payments, since investment returns may exceed your interest rate over time.