Debt Payoff Calculator
When you will be debt-free paying several debts from one monthly budget, comparing the avalanche and snowball methods.
Your debts
Filled in with example values. Replace them with your own.
Currency symbol
Results update as you type.
Result
Debt-free in 1 year 11 months with the avalanche method, paying $600.00 a month; total interest $1,199.05
Debt-free in
1 year 11 months
- Total interest
- $1,199.05
- Total paidDebts + interest
- $13,699.05
- Total debt today3 debts
- $12,500.00
Payoff order
- 1.Card Amonth 11
- 2.Card Bmonth 15
- 3.Car loanmonth 23
Interest paid, both methods
Avalanche saves $49.34 in interest compared with snowball.
How the debt payoff calculator works
Enter each debt’s balance, yearly interest rate and minimum payment, and the total you can pay towards debts each month. The calculator then works through the months one by one, in whole cents.
Each month, interest is added to every balance and every minimum payment is made. Whatever is left of the budget goes to one target debt. Once a debt is cleared, its minimum payment rolls on to the next target. Two orders are compared:
- Avalanche: the highest interest rate first.
- Snowball: the smallest balance first.
Each month
Interest = Balance × Rate ÷ 12
Extra = Budget − Minimum payments
Target debt gets its minimum + Extra
Worked example
Three debts and a budget of 600 a month:
- Card A: 3,000 at 22%, minimum 90
- Card B: 1,500 at 18%, minimum 45
- Car loan: 8,000 at 6%, minimum 250
The minimums add up to 385, leaving 215 extra each month. With avalanche, Card A is cleared in month 11, Card B in month 15 and the car loan in month 23, with 1,199.05 interest in total. Withsnowball, Card B goes first (month 7), then Card A (month 15) and the car loan (month 23), with1,248.39 interest. Both finish in 23 months; avalanche saves 49.34.
Assumptions and limitations
- Rates and minimum payments stay the same, and no new borrowing is added.
- Interest is charged monthly on the balance (rate ÷ 12) and rounded to the cent, half up. Cards that charge daily interest will differ slightly.
- Fees, penalties and promotional rates are not included.
Frequently asked questions
Which method should I choose?
Avalanche (highest rate first) normally costs the least interest. Snowball (smallest balance first) clears individual debts sooner, which some people find easier to stick with. The calculator shows both, so you can see what the choice costs.
What happens when a debt is paid off?
Its minimum payment stays in your budget and goes to the next debt in line. This is what makes both methods speed up over time.
Why does it say my debts would never be paid off?
If the budget barely covers the interest being added each month, the balances shrink very slowly or not at all. The calculator stops at 50 years. Raising the monthly budget is the only fix within the calculation.
Do minimum payments change as balances fall?
On many credit cards the required minimum falls as the balance falls. This calculator keeps each minimum fixed at the amount you enter, which is what you would pay if you kept paying that amount.