How this calculator works
Both strategies pay the minimum on every debt and throw every extra dollar at one specific debt. The only difference is which debt gets targeted first.
- Avalanche targets the debt with the highest interest rate first. This saves the most money in interest, mathematically.
- Snowball targets the debt with the smallest balance first. This feels faster because you knock out individual debts sooner, but usually costs more in total interest.
When one debt is paid off, its payment "rolls" onto the next targeted debt. That's why both methods speed up over time.
FAQ
Which method is actually better?
Avalanche wins on pure math: it always costs less or equal interest than snowball. Snowball wins on behavior: the quick wins keep people motivated. The best method is the one you'll stick with.
Why does the payoff date matter as much as the interest?
Debt compounds. Every month you're paying minimums, the balance grows. Paying off faster can save more than switching methods, even if it means throwing $100/month extra at it.
What if my minimums are more than my total payment budget?
The calculator will warn you. You either need to increase your budget, call creditors to lower minimums, or look at debt management / consolidation.
Does this include credit card fees?
No, just interest. If your cards have annual fees, subtract those from your available payment budget.
What about 0% APR promotional rates?
Set the rate to 0%. The calculator treats that debt like any other but with no interest accrual. Just make sure the 0% period covers your payoff timeline, or the rate will jump later.
Can I pay more if I get a raise?
Yes. Come back, increase your total payment, and see how much sooner you'd be debt-free. That's the easiest "what if" this calculator answers.