LoanLab
Menu

Debt Payoff Calculator

Add your debts and an extra monthly amount. See how the avalanche (highest rate first) and snowball (smallest balance first) methods compare.

How the two methods differ

Both pay every debt's minimum every month. The difference is where the extra money goes:

Each cleared debt frees its minimum, which rolls onto the current target on top of your extra payment — so your total monthly outlay stays constant while the payoff accelerates. That compounding is the whole point of both methods.

Worked example

Three debts — a $6,000 card at 24%, a $12,000 car loan at 8%, and a $9,000 student loan at 5% — with minimums totalling $520 and $300 extra a month. Avalanche clears the 24% card first and finishes all three in the fewest months for the least total interest.Snowball clears the smallest balance first; it usually finishes a month or two later and costs a little more interest, but you close an account sooner. Run your real numbers above to see the gap for your situation — it's often small.

Which to choose

Pick avalanche if the interest saved matters more to you; pick snowball if the motivation of an early win is what keeps you going. A common hybrid: clear one or two tiny balances first for momentum, then switch to strict highest-rate order. See avalanche vs snowball for more.

Related tools

Frequently asked questions

Avalanche or snowball — which is better?
Avalanche (highest interest rate first) always costs the least interest and clears debt fastest mathematically. Snowball (smallest balance first) clears individual debts sooner, which some people find more motivating. The gap is often small; the best method is the one you will stick to.
What is the 'extra payment'?
Any amount above the sum of your minimum payments. It is applied to the current target debt. When a debt is cleared, its old minimum rolls into the extra — this compounding is what makes both methods accelerate.
Do the minimums change as balances fall?
This model keeps each debt's minimum fixed until it is paid off, which is a slight simplification for credit cards (whose minimums shrink with the balance). It makes the comparison between methods clean.
What if my minimums don't cover the interest?
Then that debt grows and the payoff never completes. The calculator stops after 100 years and you should treat that as a signal to seek help or negotiate the debt.
How much extra should I put toward debt each month?
As much as you can after essentials and a small emergency buffer. Even $100 to $200 a month makes a large difference over a few years because of the snowballing effect. Try a few figures in the extra-payment field to see how each shortens the timeline.
Should I pause debt payoff to build an emergency fund?
Build a small starter buffer ($1,000 to $2,000) first, so a surprise expense doesn't go on a credit card and undo your progress. Then attack high-interest debt aggressively. Save the full 3-to-6-month emergency fund after the expensive debt is gone.
Is a balance-transfer card a good idea?
A 0% intro balance-transfer card can freeze interest for 12 to 21 months, so every payment goes to principal — powerful if you can clear the balance before the promo ends. Watch for the 3 to 5 percent transfer fee and don't use the card for new purchases.
What about debt settlement or consolidation loans?
A consolidation loan can lower your rate and simplify payments if your credit qualifies. Debt settlement (paying less than owed) damages your credit for years and has tax consequences; treat it as a last resort before bankruptcy, and get advice from a non-profit credit counsellor first.

Last reviewed: September 2026. Figures and formulas are checked against their published sources; see the site's data notes.