Debt Payoff Calculator

Snowball vs avalanche — which is faster?

Avalanche (highest APR first) always saves the most interest and is mathematically fastest, because every extra dollar attacks the most expensive debt. Snowball (smallest balance first) usually costs a little more in interest but delivers quick wins — closing that first small account builds the momentum that keeps people going. Toggle between the two above to see the exact difference for your debts; if the gap is small, pick the one you'll stick with.

How to use this calculator

Enter each debt's current balance, APR, and minimum monthly payment, then the extra amount you can put toward debt each month. The simulation pays every minimum, sends the extra to the first debt in your chosen order, and — whenever a debt is paid off — rolls its freed-up minimum into the next one. That rollover is the "snowball" effect, and it applies to both methods. Pair it with a monthly budget (our 50/30/20 calculator is a quick start) to find how much extra you can realistically commit.

A worked example

Take the calculator's starting debts: a $4,500 credit card at 22.9% APR (minimum $120) and a $9,000 car loan at 6.5% (minimum $250), with $200 extra each month. Either method clears both debts in 27 months with about $1,619 of total interest — the credit card is gone by month 17, and its freed-up $120 minimum then piles onto the car loan. The two methods agree here because the credit card is both the smallest balance and the highest rate; when your smallest debt isn't your most expensive one, the methods diverge, and the toggle above shows exactly what the difference costs.

What does this calculator assume?

Interest compounds monthly at each debt's APR divided by 12, applied before payments each month. Minimum payments stay constant, and a paid-off debt's minimum rolls into the payment pool rather than back into your pocket. The simulation stops at 600 months — if balances still aren't shrinking by then, it tells you interest is outpacing your payments instead of showing a misleading date. Real cards recalculate minimums as balances fall; entering today's minimums as fixed numbers is the more conservative (slightly slower) estimate.