Debt Payoff Calculator
Free debt payoff calculator: avalanche or snowball? Your debt-free date, the interest you pay and the order your debts are cleared, side by side.
No currency is shown on purpose: the figures come out in whatever unit you type in.
Order in which the debts are paid off
| # | Avalanche | Snowball |
|---|
What it does
List your debts with their balance, interest rate and minimum payment, and say how much more you can pay each month. Every month each debt gets its minimum, and everything left goes to one target debt; when a debt is paid off, its minimum moves to the next one. The avalanche targets the highest interest rate first, which costs the least; the snowball targets the smallest balance first, which gives quicker wins.
How to use it
- Type each debt: a name, the balance, the interest rate and the minimum payment.
- Type how much more than the minimums you can pay each month.
- Compare the debt-free date and the interest of each method, and the order in which the debts are paid off.
The arithmetic runs in your browser. Nothing you type is sent anywhere and nothing is stored, so you can use these with real numbers.
Frequently asked questions
Avalanche or snowball: which is better?
In money, the avalanche always costs the same or less. The snowball can cost more, but paying off a whole debt early keeps many people motivated. If the difference shown is small, choose the snowball; if it is large, the avalanche is worth the wait.
What happens when a debt is paid off?
Its minimum is not spent elsewhere: it is added to the payment of the next debt in the order. That is why the total budget stays the same every month and the payments "snowball" as each debt disappears.
Should I include my mortgage?
Usually not. Mortgages have low rates and long terms, and the methods work best on consumer debt: cards, store cards, personal and car loans. Keep paying the mortgage as normal and list the rest.
What about consolidating my debts?
A consolidation loan replaces several debts with one at a lower rate. Type it as a single debt with the new rate and payment, and compare the interest and the debt-free date with your current list.
Wikipedia — Debt snowball method
Wikipedia — Debt consolidation
Wikipedia — Annual percentage rate