Debt Snowball & Avalanche Calculator

Enter each debt's balance, APR, and minimum payment, plus any extra you can pay each month. The calculator keeps your total monthly payment fixed (all minimums plus the extra). Each month it adds interest, pays every minimum, and sends everything left over to the focus debt: the smallest balance for the snowball, the highest rate for the avalanche. When a debt is paid off, its minimum rolls into the next one.

Results assume fixed rates, no new charges, and payments made on time. If your payments don't cover the monthly interest, the calculator will tell you instead of showing a plan that never ends.

The debt snowball method involves paying off debts from smallest to largest balance, regardless of interest rate. You make minimum payments on all debts, then put any extra money toward the smallest debt. Once it's paid off, you roll that payment into the next smallest debt, creating a "snowball" effect.

Pros: Quick wins boost motivation, simpler to follow

Cons: May pay more interest overall

The debt avalanche method prioritizes debts with the highest interest rates first. You make minimum payments on all debts, then put extra money toward the debt with the highest rate. This minimizes the total interest paid over time.

Pros: Saves the most money on interest, faster mathematical payoff

Cons: May take longer to see first debt eliminated

Choose based on your personality and needs:

• Snowball: If you need motivation and quick wins to stay on track
• Avalanche: If you're disciplined and want to save the most money

Both methods work; the best one is the one you'll stick with. For a deeper decision framework with a worked example, see the snowball vs avalanche guide.

Any extra payment helps! Even $25-50 per month can significantly reduce your payoff time. Review your budget and find areas to cut:

• Cancel unused subscriptions
• Reduce dining out
• Take on a side gig
• Use tax refunds and bonuses

Usually some of both. A common order of operations:

1. Build a small starter emergency fund (often $1,000 or one month of expenses) so a surprise bill doesn't go back on a card
2. Contribute enough to get any employer 401(k) match
3. Attack high-interest debt like credit cards with the snowball or avalanche
4. Grow your emergency fund to 3-6 months of expenses

Low-interest debt such as a mortgage can usually be paid on schedule while you save and invest. Use the emergency fund calculator to size your cushion.