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Debt payoff calculator: snowball vs avalanche
Enter your debts and what you can pay each month. See when you'll be debt-free, how much interest you'll pay and which method saves more.
Your payoff plan
Save this plan and track every payment
In Clear-Budget each debt is a bucket with its balance and APR. Slide the payment to see your payoff date, add it to your budget, and the balance drops as you mark payments paid.
Debt snowball vs debt avalanche
Both methods work the same way: pay the minimum on every debt, put every extra dollar toward one target debt, and when that debt is gone, roll its whole payment into the next target. The amount you pay each month stays the same, but more of it goes to principal as each debt disappears. The only difference is the order. The snowball targets the smallest balance first, for quick wins. The avalanche targets the highest interest rate first, which usually costs less.
To use the calculator, enter each debt's current balance, its APR (the yearly interest rate) and its minimum monthly payment, then the extra amount you can add each month. The results update as you type and show both methods side by side: how many months until you're debt-free, the total interest you'd pay, and the month each debt is paid off.
The math runs one month at a time. Each month, every balance grows by its APR divided by 12, the minimums are paid, and whatever is left of your monthly total goes to the target debt. If the total you pay each month isn't more than the interest being added, the balance can't go down, and the calculator tells you the debt will never be paid off at that rate. Lenders usually charge interest daily, so treat the results as a close estimate rather than an exact payoff quote.
Questions
What is the debt snowball method?
You pay the minimum on every debt and put any extra money toward the smallest balance. When it's paid off, its payment rolls into the next smallest. Quick early wins help many people stay motivated.
What is the debt avalanche method?
You pay the minimum on every debt and put any extra money toward the debt with the highest interest rate. It usually saves the most interest and can get you out of debt sooner.
Which is better, snowball or avalanche?
Avalanche costs less whenever your highest-rate debt isn't also your smallest. Snowball can be easier to stick with because debts disappear sooner. Compare both with your own numbers; if the difference is small, pick the one you'll keep doing.
How is interest calculated?
Each month the calculator adds one twelfth of the APR to each balance, then takes out that month's payment. Card issuers usually charge daily interest, so your real numbers may differ by a few dollars.
Why does it say my debt will never be paid off?
Your monthly payments are not more than the interest added each month, so the balance never goes down. Add an extra payment, even a small one, or ask the lender for a lower rate.
Is my information saved or sent anywhere?
No. The math runs in your browser and nothing you type is sent to Clear-Budget. Your numbers are remembered on this device only, so they're still there if you come back.