Debt Snowball vs. Debt Avalanche Calculator
Compare the two most popular strategies for becoming debt-free faster.
Why You Need a Strategy
Paying off multiple debts (like credit cards, student loans, or car notes) can be overwhelming. Paying just the minimums often means staying in debt for decades due to compounding interest. To get out of debt efficiently, you need a plan that utilizes any "extra" money in your budget strategically. The two most proven methods are the Debt Snowball and the Debt Avalanche.
Strategy 1: The Debt Snowball
The Debt Snowball method focuses on psychology and momentum. You list your debts from the smallest balance to the largest balance, ignoring interest rates. You make minimum payments on everything except the smallest debt. You throw every bit of extra money at that smallest debt until it's gone. Then, you take what you were paying on that first debt and roll it into the next smallest one. The "snowball" of money grows as you eliminate debts, providing quick wins that keep you motivated.
Strategy 2: The Debt Avalanche
The Debt Avalanche method is the mathematically optimal route. You list debts from the highest interest rate to the lowest interest rate. Like the snowball, you pay minimums on everything, but throw all extra money at the debt with the highest interest rate. This minimizes the total amount of interest you pay over time, usually resulting in getting out of debt slightly faster and cheaper than the snowball method, though it may take longer to see the first debt completely disappear.
How to Use This Calculator
Enter how much extra money you can commit to debt repayment each month above your required minimums. Then, enter the current balance, interest rate (APR), and minimum monthly payment for up to three different debts. The calculator will simulate month-by-month payments using both strategies to show you the difference in total interest paid and time to freedom.
Debt 1 Details (e.g., Credit Card)
Debt 2 Details (e.g., Car Loan)
Debt 3 Details (e.g., Student Loan)
Disclaimer: This calculator provides estimates for educational purposes only. Actual payoff times and interest totals may vary based on specific lender policies, daily interest calculations, and payment timing. It assumes fixed interest rates and consistent payments.