How this calculator works
Every month the calculator adds interest to each balance (APR divided by 12), pays the minimum on every debt, and then sends everything that is left to one target debt. That leftover is your extra payment plus the minimums of any debt you have already paid off, the “rollover” that makes both methods work. The comparison line, “minimums only”, pays each debt its own minimum and never redirects money.
Avalanche vs. snowball
- Avalanche targets the highest APR first. It minimizes the total interest you pay, so it is usually the cheapest option.
- Snowball targets the smallest balance first. It may cost a little more interest, but clearing whole debts quickly gives visible wins that help many people keep going.
The results panel compares your chosen method with the other one, so you can see what the difference is for your own debts. Often it is smaller than people expect, so pick the one you will actually stick with.
Ways to pay off debt faster
- Never skip a minimum. Late fees and penalty rates can undo months of progress.
- Find a fixed extra amount. Even $50 a month shortens the timeline noticeably, and you can test it above.
- Look at your rates. Ask your lender about lower rates, or compare consolidation and balance-transfer offers, but read the fees and terms carefully before moving debt around.
- Stop adding new balances. This calculator assumes no new charges.
Frequently asked questions
Which is better, avalanche or snowball?
Mathematically, avalanche costs less interest. Snowball can be better for motivation. The best plan is the one you keep following.
What if my minimum does not cover the interest?
Then the balance never shrinks. The calculator will tell you the debt is not paid off within 100 years; increase the payment.
Do minimum payments change over time?
Real minimums often fall as a balance falls. This tool keeps payments fixed, which matches what you should do if you want to get out of debt: keep paying the same amount.
Does it work for mortgages and student loans?
Yes, as long as you know the balance, APR and monthly payment. For loans with fixed schedules the result should match your lender’s, apart from rounding.