Debt Payoff Calculator — Snowball vs Avalanche | money-calc.com

Free debt payoff calculator. Compare Snowball vs Avalanche strategies to find the fastest, cheapest path to being debt-free. See total interest, payoff timeline, and order.

Snowball vs Avalanche, simulated honestly

Snowball targets the smallest balance first for fast psychological wins; Avalanche targets the highest interest rate first for the lowest mathematical cost. Rather than estimating, the calculator simulates every month — interest, minimums, extra payment, rollovers — for both strategies and for a minimums-only baseline, so you can see the real gap in months and dollars for your exact debts.

Reading the example scenario

In the three-debt scenario above, Snowball clears its first debt at month 10 while Avalanche's first win waits until month 22 — yet Avalanche finishes a month sooner and saves $501.43 of interest. That is the usual trade: Avalanche is cheaper on paper, Snowball is easier to stick with. Either beats minimums-only by more than three years here. Informational comparison, not advice.

How to Use

  1. List Every Debt — Add each debt with its current balance, annual interest rate (APR), and minimum monthly payment
  2. Add Your Extra Payment — Enter the amount above all minimums you can commit each month — even small extras compound
  3. Calculate — Click Calculate to simulate Snowball, Avalanche, and a minimums-only baseline month by month
  4. Compare the Strategies — Check months to debt-free and total interest for each strategy side by side
  5. Check the Payoff Order — See the month each debt disappears — Snowball front-loads quick wins, Avalanche front-loads savings
  6. Test Bigger Extras — Raise the extra payment and recalculate to see how strongly the timeline responds

FAQ

What is the Snowball method?

The Snowball method pays off the smallest balance debt first while making minimum payments on all others. As each debt is eliminated, its payment rolls into the next debt, creating momentum. It's psychologically rewarding but may cost more in interest than Avalanche.

What is the Avalanche method?

The Avalanche method targets the highest interest rate debt first, minimizing total interest paid. Mathematically optimal, it can save hundreds or thousands versus Snowball — but requires patience if the high-rate debt has a large balance.

Which method is better, Snowball or Avalanche?

Avalanche saves more money in total interest. Snowball provides faster psychological wins. If staying motivated is your challenge, Snowball works better. If minimizing cost is your goal, Avalanche wins. The best method is the one you'll stick to.

How does the month-by-month simulation work?

Each simulated month, interest accrues at APR ÷ 12 on every balance, minimums are paid, and then the whole extra — plus minimums freed by already-cleared debts — goes to the current target debt. The simulation runs until everything is paid, capped at 1,200 months.

How big can the difference between strategies get?

With $8,000 at 22% (min $200), $3,000 at 12% (min $90), $12,000 at 7% (min $250) and a $250 extra: Avalanche finishes in 35 months with $3,951.52 interest, Snowball in 36 months with $4,452.95, and minimums-only drags to 73 months and $9,338.70.

What happens to a debt's minimum payment after it's paid off?

In both Snowball and Avalanche it rolls into the extra payment attacking the next target — the rollover that accelerates the endgame. The minimums-only baseline gets no rollover, which is a large part of why it costs the most.