Pocketify
- Pocketify
- Free tools
- Debt payoff calculator
Debt payoff calculator: snowball vs avalanche
Enter your debts once and see which payoff order gets you debt-free sooner, and what each one costs in interest.
Short answer: pay the minimum on every debt, then put every spare amount on one debt at a time. The snowball method targets the smallest balance first for quick wins. The avalanche method targets the highest interest rate first and usually pays the least interest. When one debt is gone, its payment rolls onto the next.
Snowball vs avalanche at a glance
| Debt snowball | Debt avalanche | |
|---|---|---|
| Pay extra on | Smallest balance first | Highest interest rate first |
| Strength | Fast first win, keeps you motivated | Least interest, often sooner |
| Best for | Many small debts, or if you have quit plans before | High-rate credit cards, or if the numbers motivate you |
Get out of debt faster
- Stop adding to it. Put the cards away while you pay them down.
- Keep a small buffer. A starter emergency fund stops a surprise bill going back on the card.
- Find the extra. Cancelled subscriptions and a tighter monthly budget are where most extra payments come from.
- Roll payments forward. When a debt is gone, add its whole payment to the next one.
This is an estimate for planning, not financial advice. If you are struggling with repayments, a free, non-profit debt advice service in your country can help.
Frequently asked questions
What is the debt snowball method?
With the debt snowball you pay the minimum on every debt and put any extra money on the smallest balance first. When it is paid off, its payment rolls onto the next smallest. Quick early wins help many people keep going.
What is the debt avalanche method?
With the debt avalanche you pay the minimum on every debt and put the extra on the debt with the highest interest rate first. It usually costs the least interest and often finishes sooner.
Which is better, snowball or avalanche?
Avalanche saves the most money on paper. Snowball can work better if you need visible progress to stay motivated. The best method is the one you will keep doing; this calculator shows how much the difference is for your debts.
Why does the calculator say a debt never gets paid off?
If a minimum payment does not cover the interest charged each month, the balance grows. Raise that payment or add extra money each month until it does.
Is this calculation exact?
It is an estimate. It assumes a fixed interest rate, interest charged monthly at the yearly rate divided by twelve, and no new borrowing. Your lender's statement is the exact figure.
Related free tools
Emergency fund calculator
Your safety-net target from essential costs, and how long it takes to build.
Monthly budget calculator
See what is left after bills and savings, and what that means per day.
Subscription cost calculator
Add up streaming, apps and memberships per month and per year.
50/30/20 calculator
Split pay into needs, wants and savings, and compare it with your real spending.