Debt Payoff Calculator
List your debts, set what you can pay in total each month, and compare the snowball (smallest balance first) with the avalanche (highest rate first): payoff order, debt-free date and interest.
Payoff order
- Store card — gone after 4 mo
- Visa — gone after 1 yr 5 mo
- Personal loan — gone after 1 yr 9 mo
- Car loan — gone after 2 yrs 3 mo
Paying only minimums would take 6 yrs 7 mo and cost $7,866 in interest.
Total debt over time
Avalanche saves $286 versus snowball on these debts.
Which method suits my debts?
Sends only the numbers shown above (and your question) to an AI model via Vercel AI Gateway. Nothing is stored. It's a plain-language read, not financial advice.
Snowball vs avalanche, explained
Both methods share one engine: you commit to a fixed total payment, pay every minimum, and aim everything extra at a single target. When the target is paid off, its whole payment rolls onto the next target, so the amount you're throwing at debt grows like a snowball rolling downhill.
The only difference is the order. Avalanche ranks by interest rate, which minimizes interest. Snowball, popularized by Dave Ramsey, ranks by balance, which clears whole accounts sooner. Research from Northwestern's Kellogg School found people who concentrate on paying off individual accounts are more likely to stick with repayment, so the "wrong" method can be the right one if it keeps you going. Toggle the method above: if the gap is small, pick the one you'll finish.
Questions people ask
What is the debt snowball method?
Pay the minimum on every debt, then throw every spare dollar at the smallest balance. When it’s gone, roll its payment into the next smallest. Quick early wins keep many people motivated.
What is the debt avalanche method?
Same structure, but you target the highest interest rate first. Mathematically it always costs the same or less interest than the snowball, because the most expensive debt shrinks fastest.
Snowball or avalanche: which is better?
Avalanche saves the most money; snowball often feels better because debts disappear sooner. When your smallest debt also has a high rate they converge. The comparison above shows the dollar difference for your debts so you can decide if the motivation is worth it.
Why does my monthly budget have to be more than the minimums?
Both methods work by adding extra money on top of the minimums and rolling freed-up payments forward. With no extra, each debt just follows its own minimum schedule.