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How the debt payoff calculator works
List each debt with its balance, interest rate (APR) and minimum payment, then add what you can pay on top each month. Choose the snowball or the avalanche. The calculator pays every minimum, sends the extra to your target debt, rolls each paid-off minimum into the next target, and shows your debt-free date, the total interest and the payoff order. It also shows the other method and the minimum-payments-only path for comparison.
Snowball vs avalanche: an example
$23,300 of debt with $200 a month on top of the minimums:
| Debt | Balance | Rate | Minimum |
|---|---|---|---|
| Credit card | $5,300 | 22.36% | $160 |
| Personal loan | $4,000 | 11.90% | $190 |
| Car loan | $14,000 | 7.54% | $340 |
Rates: average card rate on accounts charged interest, 24-month personal loan and 60-month new car loan, Federal Reserve G.19, August 2026. Card balance: CFPB average per cardholder. Other balances and minimums are examples.
| Plan | Debt-free in | Total interest | First debt gone |
|---|---|---|---|
| Avalanche (highest rate first) | 2 years 6 months | $3,171 | Credit card, month 18 |
| Snowball (smallest balance first) | 2 years 7 months | $3,438 | Personal loan, month 11 |
| Minimums only | 3 years 6 months | $5,067 | Personal loan, month 24 |
Source: our calculation.
The avalanche saves $268 here. The snowball gives you a paid-off account seven months sooner, which research from Kellogg suggests can keep people motivated. Either beats paying only the minimums by about $1,600 to $1,900 of interest.
Which method should you pick?
Choose the avalanche if your highest-rate debt is also large, or if you are motivated by the total you save. Choose the snowball if you have several small balances and want quick wins. The best plan is the one you will keep paying every month.
For a single credit card, the credit card payoff calculator models the minimum-payment formula card issuers use. Building a cushion so new debt does not pile up? Try the emergency fund calculator.
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Questions people ask
What is the difference between the debt snowball and the debt avalanche?
Both pay the minimum on every debt and put any extra money on one target. The snowball targets the smallest balance first; the avalanche targets the highest interest rate first. When a debt is paid off, its minimum rolls into the next target, so the payment grows like a snowball either way.
Source: DollarMapWhich saves more money, snowball or avalanche?
The avalanche always costs the same or less interest, because the most expensive debt shrinks first. In our example of $23,300 across three debts with $200 extra a month, the avalanche saves $268 and finishes a month sooner (our calculation). The gap grows when a high-rate debt also has a large balance.
Source: Our calculationDoes the snowball method really work?
Research suggests it helps people stick with it. Kellogg researchers David Gal and Blakeley McShane studied nearly 6,000 debt-settlement clients and found that closing individual accounts predicted getting out of debt better than the dollars repaid. Boston University's Remi Trudel, writing in Harvard Business Review, likewise advised paying off the smallest debt first.
Source: Kellogg Insight, Jan 2014; Harvard Business Review, Dec 2016How much does an extra $200 a month help?
In our example it cuts the payoff from 3 years and 6 months on minimums alone to about 2 years and 6 months, and saves about $1,897 in interest with the avalanche method (our calculation).
Source: Our calculationWhat is the average credit card interest rate?
22.36% on accounts that were charged interest, and 21.19% across all accounts, in August 2026, per the Federal Reserve's G.19 release.
Source: Federal Reserve G.19, Oct 7, 2026Should I consolidate debt with a personal loan?
It can help if the new rate is clearly lower. The average 24-month personal loan rate was 11.90% in August 2026, well below the 22.36% average card rate (Federal Reserve G.19). Run both in the calculator, include any loan fee, and avoid running the cards back up.
Source: Federal Reserve G.19Sources
Every number above comes from these pages. We list the date each page showed when we checked it.
- Board of Governors of the Federal Reserve System, Consumer Credit - G.19
- Federal Reserve Bank of New York, Household Debt and Credit Report, Q2 2026
- Kellogg Insight, To Beat Debt, Consider Starting Small
- Harvard Business Review, Research: The Best Strategy for Paying Off Credit Card Debt
- Consumer Financial Protection Bureau, The Consumer Credit Card Market
For general information only, not financial advice. Rates and rules change, so check with your bank or a licensed advisor before you decide.
- Passed Level II of the CFA® Program
- Canadian Securities Course (CSC)
- Conduct and Practices Handbook (CPH)
Sepehr Parsa is a financial planner and the founder and editor of DollarMap. He has passed Level II of the CFA Program and completed the Canadian Securities Course (CSC) and the Conduct and Practices Handbook (CPH) course. He writes and edits our guides on cars, home repairs, budgeting, saving and investing, and checks that every number has a source.
“In a slowing economy, a budget is what keeps you afloat.”
