Compare snowball and avalanche payoff plans from your balances, rates, minimums and monthly budget: time to debt-free, total interest, payoff order.
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The tool simulates paying down your debts month by month: each debt accrues interest (balance × rate ÷ 12), the minimum payment is applied to each one, and whatever is left of your total budget goes to the target debt — the smallest balance with snowball, the highest rate with avalanche. When a debt is paid off, its freed-up minimum payment rolls to the next target debt, and so on until everything is paid.
The snowball method pays the minimum on every debt and directs all extra money to the debt with the smallest balance, no matter its interest rate. Clearing small debts quickly builds momentum and psychological wins, which helps people stick to the plan — even though it is not always the cheapest way out.
The avalanche method pays the minimum on every debt and directs all extra money to the debt with the highest interest rate first. Because the most expensive debt is retired first, total interest paid over the payoff is mathematically minimal. The trade-off: the first debt may take longer to clear than with the snowball.
The tool simulates each month: every debt accrues interest (balance × APR ÷ 12), the minimum payment is applied to each, and whatever total payment is left over goes to the current target debt (smallest balance for snowball, highest rate for avalanche). When a debt is paid off, its freed-up minimum rolls into the next target — the classic avalanche/snowball cascade.
Snowball ignores interest rates when ordering debts, so a high-rate balance can sit unpaid while smaller, cheaper debts are cleared. Every month that expensive debt stays outstanding, it keeps charging interest. Avalanche avoids this by attacking the highest rate first, which is why it always produces equal or lower total interest.
This is a planning estimate, not a quote. It assumes simple monthly compounding on each balance, no new charges, fixed rates, and your stated total budget each month. Real balances, minimums and rates change over time, so treat the numbers as a solid ballpark and re-run the plan as your situation changes.
If you just finished with Debt Payoff Calculator, the natural next steps are Loan Prepayment Calculator, Credit Card Payment Calculator, EMI Loan Calculator, or browse every tool in Cross-border Finance.