Debt
Debt Payoff Calculator
Built and maintained by Chandranshu Kumar · Figures from the IRS, SSA, BLS and Freddie Mac
Two ways to attack it
Avalanche sends your extra money at the highest interest rate first, which saves the most. Snowball goes after the smallest balance first, which costs a little more but hands you a quick win, and that momentum keeps a lot of people going. If the difference in interest is small, pick the one you will actually stick with. The single biggest lever is the extra payment, not the method, so drag that slider and watch the finish line move.
Assumes you keep paying the same total each month and roll finished payments onto the next debt. Rates are annual. Not financial advice. There's a full write-up in our snowball vs avalanche guide.
How the payoff is worked out
The tool runs all your debts together, month by month. Each month it adds interest to every balance, pays the minimum on each, then puts your extra on one focus debt. Here that is $300 on top of the three minimums.
The method decides which debt gets the extra. Avalanche targets the highest interest rate first, the 26% store card in the example, because that balance costs the most to carry. When a debt clears, its old payment rolls onto the next one, so the amount thrown at the balance grows as you go. Avalanche clears these debts in about 2 yr 5 mo with $1,662 in interest.
Snowball instead targets the smallest balance first to hand you a paid-off debt early, and that win keeps many people going. In this example the smallest balance, the $1,000 store card, is also the highest rate, so both methods attack the debts in the same order and land on the same 2 yr 5 mo and $1,662 in interest. When the smallest balance is not the priciest, avalanche saves more and snowball costs a little extra for the motivation.
Common questions
Is snowball or avalanche faster?
Avalanche is usually a little faster and always costs the least, because it kills the highest rate first. Snowball costs slightly more but gives you an early win.
Does paying extra really help?
A lot. Minimums are built to keep you paying for years, so every extra dollar hits the balance directly and cuts both the time and the interest.
Which method should I pick?
If you want the lowest cost, use avalanche. If you need an early win to stay motivated, use snowball. When the interest difference is small, the one you will keep doing wins.
What counts as the extra payment?
Any money above the combined minimums. It goes to a single debt at a time rather than spread thin, which is what makes either method work. To see how one balance behaves on its own, use the credit card payoff calculator, or read the full method.