Category
Finance
Debt Payoff Calculator
Compare snowball vs avalanche strategies and build a debt payoff schedule
Estimated time
3 min
Debt Inputs and Strategy
Add each debt, choose a payoff method, and set how much extra to pay monthly.
Method
Snowball prioritizes the smallest balance first for quick momentum.
This extra amount is added after minimum payments each month and directed by your selected payoff strategy.
$
This amount is added on top of all active debt minimums each month.
Debt List
For each debt, enter the current balance, APR, and required monthly minimum from your latest statement.Payoff Schedule
Month-by-month payoff plan for your selected strategy.
No schedule available yet.
| Month | Date | Focus Debt | Payment | Interest | Principal | Remaining | Milestones |
|---|---|---|---|---|---|---|---|
| Enter debts to generate a payoff schedule. | |||||||
Snowball vs Avalanche Methods
Both methods pay all debt minimums first, then direct your extra payment toward a priority debt. Snowball prioritizes the smallest balance, while avalanche prioritizes the highest APR.
Strategy Rules
Snowball targets the smallest balance first; Avalanche targets the highest APR first.
Snowball- prioritize the debt with the smallest remaining balance first
Avalanche- prioritize the debt with the highest interest rate first
Budget- total monthly debt budget = sum of active minimums + extra payment
Roll-over- when a debt is paid off, freed minimum payment shifts to the next target debt
Debt Balance Formula
B_(t+1) = B_t + (B_t * r) - P_t; Interest Saved = minimum-only interest - selected-method interest
B_t- debt balance at the beginning of month t
r- monthly interest rate (APR / 12)
P_t- payment applied in month t (minimum + any extra allocation)
B_(t+1)- ending balance after monthly interest and payment
Interest Saved- minimum-only interest minus selected-method interest
- Snowball: smaller balances are cleared sooner, which can build momentum.
- Avalanche: higher rates are attacked first, which usually minimizes total interest.
- In both methods, paid-off minimums roll into the next target debt to accelerate payoff.
- APR is treated as fixed and converted to a monthly rate using APR / 12.
- Payments are modeled monthly and applied after monthly interest accrues.
- Results are estimates and do not include fees, penalties, or promotional rate changes.
- Interest saved compares against a minimum-only baseline with the same debt inputs.
Frequently Asked Questions
What is the difference between snowball and avalanche?
Snowball pays the smallest balance first for quick wins. Avalanche pays the highest APR first to minimize interest cost.
How is interest saved calculated?
Interest saved compares your selected method and extra payment against a minimum-only scenario using the same debt inputs.
Why might payoff not be reached?
If total monthly payments are too low relative to interest charges, balances may not decline. Increase minimums or extra payment.
Can I model 0% interest debts?
Yes. Set APR to 0 and the calculator will apply payments directly to principal for that debt.
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