Debt Payoff Calculator - Snowball vs. Avalanche
Compare the Snowball and Avalanche debt payoff strategies side by side, with months-to-debt-free and total interest paid for each.
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Snowball Strategy
Extra payment goes to the smallest balance first.
Debt-free in 46 months
Total interest paid: $3,277
Avalanche Strategy
Extra payment goes to the highest interest rate first.
Debt-free in 47 months
Total interest paid: $3,160
How the Debt Payoff Calculator Works
List each debt with its balance, annual interest rate, and minimum monthly payment, then set an extra amount you can put toward payoff each month. The calculator simulates two popular strategies month by month: the Snowball method (extra payment goes to the smallest balance first, then rolls to the next smallest once it's paid off) and the Avalanche method (extra payment goes to the highest interest rate first). Both simulations run until every debt reaches zero, capped at 600 months to avoid an endless loop on unrealistic inputs.
Example
With a $4,000 credit card at 22% APR, a $12,000 car loan at 7%, and an $8,000 student loan at 5%, plus $200 extra per month: the Avalanche method typically pays off the debts slightly faster and with less total interest, since it targets the 22% card first — but Snowball can still be worth it for the psychological win of clearing a full balance sooner.
Common Use Cases
- Deciding between Snowball and Avalanche before starting a debt payoff plan.
- Seeing exactly how many months of extra payments it takes to become debt-free.
- Estimating how much interest an extra monthly payment could save over time.
FAQs
- Which strategy saves more money? Avalanche almost always results in less total interest paid, since it eliminates high-rate debt first. Snowball can take slightly longer and cost a bit more in interest, but many people find its quick wins easier to stick with.
- What does "this debt load isn't payable" mean? It means that even after 600 months (50 years) of minimum plus extra payments, at least one balance never reaches zero — usually because the minimum payments don't cover the interest accruing each month. Increase the extra payment or renegotiate rates to fix this.
- Does the simulation account for changing interest rates? No — each debt's rate is assumed to stay fixed for the entire simulation. If your actual rate is variable, treat the result as an estimate based on today's rate.