Debt Payoff Planner
Compare the snowball and avalanche strategies across every debt you carry, with the interest and months each one costs.
snowball
Smallest balance first
- 1. Store card cleared in month 5
- 2. Credit card cleared in month 22
- 3. Car loan cleared in month 33
avalanche
Highest interest rate first
- 1. Credit card cleared in month 20
- 2. Car loan cleared in month 32
- 3. Store card cleared in month 33
Total debt remaining
Both methods pay every minimum and throw everything extra at one debt, rolling each cleared minimum into the next target. The avalanche always pays less interest; the snowball delivers a cleared account sooner, which is why people finish it more often.
Both strategies pay every minimum, then send every spare dollar at a single target. The snowball attacks the smallest balance first for a quick win; the avalanche attacks the highest interest rate first to minimize total interest. Each time a debt clears, its minimum joins the pool, which is what accelerates the payoff over time.
Frequently asked questions
Which method saves more money?
The avalanche, always, because attacking the highest rate first shrinks the fastest-growing balance first. How much more depends on how far apart your rates are and how large the expensive balances are.
Then why choose the snowball?
Because motivation is a real variable. Clearing an account in month five rather than month twenty provides visible progress and one less bill, which helps many people sustain a multi-year plan. The interest difference is often a few hundred dollars.
What if my minimums do not cover the interest?
Then no payoff plan exists at that payment level and the balances grow no matter what. The calculator reports this rather than producing a fictional schedule. The fix is more money toward the debt, a lower rate, or a hardship arrangement with the lender.
Should I keep investing while paying off debt?
Contribute enough to capture any employer 401(k) match first, since that is an immediate guaranteed return. Beyond that, debt above roughly 8% generally beats expected investment returns, because paying it is certain while returns are not.
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Calculators model hypothetical outcomes from the inputs you provide. They are informational only, not financial, investment, tax, or legal advice.