Find your debt-free date and compare the avalanche and snowball methods
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This free debt payoff calculator builds a plan to clear your credit cards and loans. Enter each debt's balance, interest rate (APR) and minimum payment, add any extra money you can pay each month, and see your debt-free date, total interest and the order in which each debt is cleared.
It compares the debt avalanche and debt snowball methods side by side so you can choose the plan that fits you.
Every month the calculator adds interest, pays each minimum, and sends the rest of the budget to the target debt until all balances are zero.
Example: a credit card of $5,000 at 22% (minimum $150), a car loan of $8,000 at 7% (minimum $200) and a personal loan of $3,000 at 12% (minimum $100), with $200 extra each month. The total owed is $16,000 and the monthly budget is $650.
Both methods pay the minimum on every debt and put all extra money on one debt at a time. The avalanche method targets the debt with the highest interest rate first. The snowball method targets the smallest balance first, which gives quicker wins.
Avalanche usually costs less in interest because high-rate debt disappears first. Snowball can feel more motivating because you close accounts sooner. In the example below, avalanche saves about $279 in interest, but snowball clears the first debt in month 11. The best method is the one you will actually stick with.
It simulates your payments month by month. Each month it adds interest to every balance, pays the minimum on each debt, and then puts all remaining money from your monthly budget on the target debt. When a debt is paid off, its minimum payment moves to the next debt.
Your monthly budget is the sum of all minimum payments plus the extra amount. Even a small extra payment shortens the payoff time and reduces interest, because it keeps going to the next debt after each one is cleared.
That happens when your payments are smaller than the interest being added each month, so the balance never goes down. Increase the minimum payment or add an extra monthly payment and calculate again.
It is an estimate. The calculator assumes fixed interest rates, no new purchases or fees and the same total payment every month. Real credit cards calculate interest daily and often lower the minimum payment as the balance falls, so your actual dates may differ.
Disclaimer: This calculator gives estimates for information only and is not financial advice. Fees, changing rates and your lender's terms are not included.