Debt Payoff Calculator

Months to Debt-Free

27 Months

The Numbers

  • Total interest paid: $1,792.67
  • Total amount paid: $13,292.67
  • Snowball Comparison: pays off in 27 months with $1,860.21 in total interest.

Analysis

  • Using the Avalanche method, these debts are paid off in about 27 months (roughly 2.3 years).
  • The Avalanche method saves about 68 in interest compared to Snowball.

Recommendations

  • Avalanche (highest rate first) minimizes total interest paid — the mathematically optimal choice.
  • Snowball (smallest balance first) clears individual debts faster, which can be easier to stick with even though it usually costs more interest overall.
  • Any extra amount you can add to the monthly budget above speeds up payoff and cuts total interest, regardless of which method you choose.

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Disclaimer

This calculator provides estimates for informational purposes only and does not constitute financial, medical, legal, or tax advice. Always consult a qualified professional about your specific situation.

How This Calculator Works

The debt avalanche and debt snowball are the two standard strategies for paying off multiple debts at once, and they target them in a different order. Enter each debt’s balance, interest rate, and minimum payment, plus any extra amount you can put toward debt each month, and this calculator projects how long payoff takes and how much interest you’ll pay — for both strategies, side by side.

Avalanche always targets whichever debt has the highest interest rate first. It’s mathematically optimal: for the same total monthly budget, it always results in the least total interest paid, no matter how the debts are arranged.

Snowball always targets whichever debt has the smallest balance first. It usually costs more interest overall than Avalanche, but clearing an entire debt sooner — even a small one — is a real motivational win that helps some people stick with a payoff plan longer than the mathematically “better” method would.

Whichever method you pick, every debt still gets at least its own minimum payment every month. Your extra monthly amount (plus the minimum payments freed up from any debt you’ve already paid off) all goes toward whichever debt the strategy currently targets, then rolls over to the next one once that debt hits zero.

The Formula

Each month, for every debt still owed:

Interest=Balance×(Annual Rate÷12)\vC{\text{Interest}} = \vA{\text{Balance}} \times (\vB{\text{Annual Rate}} \div 12) Balance=Balance+InterestPayment\text{Balance} = \vA{\text{Balance}} + \vC{\text{Interest}} - \vD{\text{Payment}}

Every open debt receives at least its own minimum payment. Any extra budget — plus minimum payments freed up from already-paid-off debts — is applied to the current target debt (highest rate for Avalanche, smallest balance for Snowball), and rolls over to the next target the moment the current one reaches zero.

Worked Example

Three debts — a $4,000 credit card at 22% ($100 minimum), a $1,500 card at 18% ($50 minimum), and a $6,000 personal loan at 9% ($150 minimum) — with $200 extra paid every month:

  1. Avalanche targets the 22% card first, then the 18% card, then the 9% loan.
  2. Snowball targets the $1,500 card first (smallest balance), then the $4,000 card, then the $6,000 loan.
  3. Avalanche always finishes with equal or lower total interest than Snowball for the exact same debts and the exact same extra payment — see your own numbers above for the size of that gap.

Source: Standard Debt Avalanche and Debt Snowball Payoff Methods.

Frequently Asked Questions

Which is better, debt avalanche or debt snowball?

Avalanche (highest interest rate first) always results in equal or less total interest paid, for the same debts and the same extra monthly payment — it's mathematically optimal. Snowball (smallest balance first) usually costs more in interest but clears individual debts sooner, which keeps some people more motivated to stick with the plan. Compare both with your own numbers above.

What happens to a paid-off debt's minimum payment?

It rolls over — once a debt reaches zero, its minimum payment joins your extra monthly budget and gets applied to whichever debt the strategy targets next. This is the actual mechanic that makes both methods work faster over time, not just a fixed extra payment applied to one debt the whole way through.

Why does my payoff show "Never within 50 years"?

This means the combined minimum payments and extra budget you entered don't fully cover the interest accruing on these balances, so the debt would never actually shrink to zero at these payment levels. Try increasing the extra monthly payment, or check whether any minimum payment is unrealistically low for its balance and rate.