Debt Payoff Calculator: Snowball vs. Avalanche

Two people with identical debts can finish years apart depending only on the order they pay them. This calculator runs both common orders on your actual numbers and shows the real difference in months and in interest.

How the two methods differ

Both methods pay every minimum every month. The only question is where the extra money goes.

Avalanche sends the extra to the highest interest rate first. Because interest is the thing actually costing you money, this order is mathematically optimal — it always costs the least total interest and is never slower.

Snowball sends the extra to the smallest balance first, regardless of rate. It usually costs more interest, but it closes an account sooner, and a closed account is a visible win. That matters more than the math suggests: research on consumer debt repayment has found that people who eliminate whole balances early are more likely to stay with the plan.

The honest answer is that the better method is the one you will finish. Run both above. If the gap is small, take the snowball and use the momentum. If the gap is large, the avalanche is worth the patience.

What this calculator assumes

• Interest compounds monthly at APR ÷ 12, applied to the remaining balance.
• You keep paying every minimum, and the freed-up payment rolls into the next debt.
• No new charges are added to any balance while you pay it off.
• Rates stay fixed. Variable-rate cards will differ.

Real accounts have fees, promotional periods, and minimum payments that shrink as the balance falls. Treat the output as a planning estimate, not a payoff quote from your lender.

Frequently asked questions

Is the avalanche method always cheaper? In pure interest, yes. It sends every extra dollar to the highest rate, so it cannot be beaten on cost. The gap between the two methods is often smaller than people expect, which is why the snowball remains a reasonable choice.

Should I pay off debt or invest? Compare the rate. Paying off a balance at 22% is a guaranteed 22% return, which no investment reliably matches. Below roughly 5-6%, the choice gets closer and depends on your situation.

Does closing a card after payoff help my credit? Usually not. Closing reduces your available credit, which can raise your utilization ratio and lower your score. Paying to zero and leaving the account open is generally the safer move.

General educational information, not personalized financial advice. Estimates are approximate and depend on the assumptions listed above.