Add all your debts, set an extra monthly payment, and instantly see which strategy 鈥?Debt Snowball (smallest balance first) or Debt Avalanche (highest APR first) 鈥?gets you out of debt fastest and cheapest.
How This Calculator Works
The calculator simulates two well-known debt payoff strategies on the exact list of debts you enter:
The Debt Snowball Method
You pay the minimum on every debt, then throw all your extra cash at the debt with the smallest balance. When that debt is gone, you "roll" its payment into the next-smallest debt. Best for motivation 鈥?you knock out wins fast.
The Debt Avalanche Method
Same setup, but extra cash goes to the debt with the highest interest rate. This minimizes total interest paid and is mathematically optimal, but you may go longer between wins.
For each strategy, we compound interest monthly, deduct your minimum payments, and apply your extra payment to the target debt. When a debt is fully paid, its minimum payment is added to the extra pool 鈥?this is the "snowball effect" that accelerates payoff.
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Frequently Asked Questions
Which method is better 鈥?Snowball or Avalanche?
Mathematically, Avalanche always saves more money because it targets the highest APR first. However, a 2016 study at Northwestern Kellogg found that people who used Snowball were more likely to actually finish paying off their debt. If the dollar gap between methods is small for your situation, pick Snowball for the motivation. If the gap is thousands, pick Avalanche.
Does the calculator account for new charges?
No. The model assumes you stop using your credit cards for new purchases. If you keep charging, you're effectively running up the down escalator 鈥?you'll need to enter a higher balance or recalculate frequently.
What counts as a "minimum payment"?
For credit cards in the U.S., it's typically 1鈥?% of the balance with a $25鈥?35 floor. For student loans and auto loans, it's your fixed monthly bill. Just enter whatever your current required monthly payment is.
Can I include my mortgage?
You can, but most personal finance experts exclude mortgages from snowball/avalanche planning because they're low-interest, long-term debt. Focus this tool on credit cards, personal loans, medical debt, and high-rate student loans.
How accurate are these numbers?
The math is precise for the inputs you provide. Real-world variance comes from changing APRs (variable rate cards), missed payments, fees, and life events. Treat the output as a clear baseline, not a guarantee.