Debt Payoff Calculator
Avalanche vs Snowball, and Your Debt-Free Date

The avalanche always costs the least interest, because every extra dollar goes to the most expensive debt. The snowball pays off the smallest balances first, which gives earlier wins and frees up minimum payments sooner.

In our four-debt example the avalanche saves $356 over the snowball. When the smallest debt also has the highest rate, the two are identical.

The best method is the one you will stick with.

It depends on the balance, the APR and what you pay. A $5,000 balance at 22% takes 52 months at $150 a month, costing $2,798 in interest.

If your payment doesn't cover the monthly interest (balance × APR ÷ 12), the balance never falls. Use the single-card section below for your own card.

For one debt, the level monthly payment is the standard amortization formula: payment = balance × r ÷ (1 − (1 + r)^−n), where r is APR ÷ 12 and n is the number of months. For $5,000 at 22% that is $468 a month to clear it in 12 months, $259 in 24 and $191 in 36.

At card rates a small payment is mostly interest: on $5,000 at 22%, 61% of a $150 first payment is interest and only $58 reduces the balance. In the four-debt example, minimum payments alone take 4 yrs 10 mo and cost $4,810 more interest than the avalanche with $300 a month extra.

Real card minimums also shrink as the balance falls, which stretches it out further than this calculator shows.

Paying off a debt is a guaranteed return equal to its interest rate. Clearing a 25% card beats any realistic investment return, while a 4% car loan may not.

A common order: contribute enough to get any employer 401(k) match first, since the match is paid on top of your contribution, then attack high-rate debt.