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Debt Payoff Calculator

Snowball vs Avalanche — two strategies, very different results. See exactly which saves more money and gets you debt-free fastest.

Your Debts (enter up to 5)

Debt 1 — Name

Balance ($)

Interest Rate (%)

Min Payment ($)

Debt 2 — Name

Balance ($)

Interest Rate (%)

Min Payment ($)

Debt 3 — Name

Balance ($)

Interest Rate (%)

Min Payment ($)

Debt 4 — Name (optional)

Balance ($)

Interest Rate (%)

Min Payment ($)

Debt 5 — Name (optional)

Balance ($)

Interest Rate (%)

Min Payment ($)

Extra Monthly Payment Budget ($) Amount above minimums to accelerate payoff

Payoff Method

Total Debt

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Total Monthly Minimums

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Debt-Free: Snowball

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Debt-Free: Avalanche

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Total Interest: Snowball

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Total Interest: Avalanche

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Interest Saved (Avalanche vs Min)

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First Debt Paid Off

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Snowball vs Avalanche: Which Method Wins?

Both methods work. The difference is mathematical vs psychological. The avalanche method saves the most money in total interest. The snowball method creates quick wins that keep you motivated. Research shows both methods succeed — but only if you stick with them.

Monthly Interest = Balance × (Annual Rate ÷ 12)
Principal Paid = Monthly Payment − Monthly Interest
Avalanche: Extra payment → highest rate debt first
Snowball: Extra payment → lowest balance debt first

What is the debt snowball method?

The debt snowball, popularized by Dave Ramsey, means paying minimum payments on all debts except the smallest balance — which you attack aggressively. Once the smallest debt is gone, you roll that payment into the next smallest. The psychological benefit is real: eliminating a debt completely creates a motivational "win" that keeps people committed to the plan. Mathematically it costs more interest, but if the alternative is giving up, the snowball wins.

Is snowball or avalanche better?

Mathematically, the avalanche method always saves more interest — sometimes significantly so (often $1,000-$5,000+ depending on your balances and rates). However, "better" depends on your psychology. Studies by researchers at Northwestern University found that people are more likely to successfully complete debt payoff when they focus on smaller balances first (snowball). Our recommendation: use the avalanche method, but if you have one very small debt, pay it off first for a quick win before switching to avalanche.

How much does extra payment help?

Extra payments have an outsized impact because they reduce the principal that interest is calculated on. An extra $200/month on a $15,000 credit card at 20% APR can cut payoff time from 10+ years to under 5 years and save thousands in interest. The earlier in the loan you make extra payments, the more impact each dollar has. Even an extra $50-100/month can cut years off your timeline.