How to use the debt payoff calculator
- List each debt with its balance, interest rate and minimum monthly payment.
- Enter how much extra you can pay each month on top of the minimums.
- Compare how long each method takes and how much interest it costs.
Snowball vs. avalanche at a glance
For a single credit card, the credit card payoff calculator
shows exactly how long your payment takes.
Frequently asked questions
What is the debt snowball method?
You pay the minimum on every debt and put all extra money toward the debt with the smallest balance. When it's paid off, its payment rolls over to the next smallest. Quick early wins keep many people motivated.
What is the debt avalanche method?
You put all extra money toward the debt with the highest interest rate first. It always costs the same or less interest than the snowball, and is the mathematically best order.
Which method should I choose?
If the difference in interest is small, choose the method you'll stick with. Many people prefer the snowball's quick wins. If the avalanche saves a lot, as it often does with high-rate credit cards, it's usually worth it.
What happens to the minimum payment when a debt is paid off?
In both methods, it isn't spent elsewhere: it rolls over and is added to the payment on the next target debt. That “rolling” payment is what makes both methods speed up over time.