Debt Payoff Calculator
Compare two popular debt payoff strategies by entering up to five debts and your available extra monthly payment. The Debt Avalanche strategy targets the highest-interest debt first, minimizing total interest paid. The Debt Snowball strategy targets the smallest balance first, providing psychological wins as you eliminate individual debts quickly. This calculator runs a month-by-month simulation for each strategy, applying interest, minimum payments, and extra payments, then rolling freed-up payments to the next target debt. Both methods are far superior to paying only minimums. The avalanche method saves the most money in total interest, while the snowball method may help maintain motivation through visible progress. Research suggests that for people struggling with motivation, the snowball's quick wins can improve follow-through despite the higher mathematical cost. The calculator shows months to debt-free, total interest paid, and the elimination order for each strategy. Any amount of extra payment beyond minimums accelerates payoff and reduces interest, making consistency more important than the amount itself.
3 debts totalling -- at an average APR of --%: avalanche payoff in -- months (-- interest), snowball in -- months (-- interest).
Your debts
Enter up to 5 debts. Clear a name field to remove a debt from the calculation.
| Name | Balance (USD) | APR (%) | Min. payment (USD/mo) |
|---|---|---|---|
How the debt payoff simulation works
The calculator runs a month-by-month simulation for each strategy. Each month it:
- Applies monthly interest (APR / 12) to each remaining balance.
- Subtracts the minimum payment from each debt.
- Applies the extra payment to the current target debt (highest APR for avalanche, smallest balance for snowball).
- When a debt reaches zero, its minimum payment is added to the extra payment pool for the next target debt (payment rollover).
- Repeats until all balances are zero, up to a 600-month safety cap.
The simulation follows the standard debt avalanche and snowball methods; for consumer guidance on managing and paying down debt, see the CFPB consumer tools.
Worked example (avalanche)
Three debts: credit card $5,000 at 22.99%, car loan $12,000 at 6.5%, personal loan $3,000 at 14%. Extra payment: $200/month.
- Month 1: interest accrues on all three. Extra $200 goes to the credit card (highest APR at 22.99%).
- Once the credit card is paid off, its former minimum ($100) joins the extra pool. The personal loan (14%) becomes the new target.
- Once the personal loan is paid off, its former minimum ($80) joins the pool. The car loan (6.5%) is the final target.
Avalanche vs snowball: the key trade-off
Avalanche always minimises total interest because the most expensive debt is eliminated first. If you have a high-rate credit card, the interest savings from targeting it early can be substantial.
Snowball eliminates accounts faster. Each time a balance hits zero you free up its minimum payment and eliminate a line on your list. Behavioural finance research suggests that visible progress increases the likelihood of sticking to a payoff plan.
If the two strategies produce similar interest costs for your specific debts, the snowball can be worth choosing for motivation. If the avalanche saves significantly more, that difference is real money. Use the comparison above to see the actual figures for your situation.
Debt payoff calculator: frequently asked questions
What is the debt avalanche method?
The debt avalanche method means paying minimums on all debts, then directing any extra payment toward the debt with the highest interest rate. Once that debt is paid off, the freed-up payment rolls to the next-highest rate. This approach minimises total interest paid over the life of your debts. Source: CFPB (consumerfinance.gov).
What is the debt snowball method?
The debt snowball method means paying minimums on all debts, then directing extra money toward the debt with the smallest balance. Once that debt is gone, its minimum payment rolls to the next smallest balance. The psychological win of eliminating accounts quickly can help maintain motivation. Source: CFPB (consumerfinance.gov).
Which debt payoff method is better?
The avalanche method saves more money in interest. The snowball method may be more motivating because you eliminate balances faster. Research on behaviour suggests motivation matters: the best method is whichever one you will actually stick to. Source: CFPB (consumerfinance.gov).
How much extra should I pay each month?
Any amount above the required minimums reduces the total interest you pay. Even a small consistent extra payment makes a measurable difference over time by reducing the principal faster and cutting the number of months to payoff.
Official sources
- CFPB, financial education: consumerfinance.gov.
- CFPB, Debt Collection: Consumer Tools: Debt Collection.
Reviewed by the CalculatorHub team, edited by James Graham, 12 June 2026. See our methodology. General information, not financial advice.