Debt Payoff Planner
Compare the avalanche and snowball methods for paying off several debts with one monthly budget.
Month-by-month payoff simulation ยท By Stuart Mathieson · Updated October 2026
Your debts
Must cover all the minimum payments
Results
Avalanche
Highest APR first
Debt-free in
Total interest
Snowball
Smallest balance first
Debt-free in
Total interest
Results are estimates for illustration only and are not financial advice. Consult a qualified financial professional before making financial decisions.
How the debt payoff planner works
Enter each debt and the total you can afford to put toward your debts each month. The planner then steps through the months:
- Interest is added to every debt at its APR ÷ 12.
- Every debt gets its minimum payment.
- Whatever is left of your budget goes to one target debt until it is paid off.
- When a debt is cleared, its minimum payment joins the money going to the next target - the "rollover" that speeds things up as you go.
It runs this twice, once for each strategy:
- Avalanche - target the debt with the highest APR first. This keeps the total interest as low as possible.
- Snowball - target the smallest starting balance first. You clear individual debts sooner, which many people find motivating.
Worked example
Three debts and a $700 monthly budget:
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Visa | $6,000 | 24% | $150 |
| Store card | $1,500 | 18% | $50 |
| Car loan | $9,000 | 7% | $250 |
The minimums add up to $450, so $250 a month goes toward paying debts off faster.
| Strategy | Order paid off (month) | Debt-free in | Total interest |
|---|---|---|---|
| Avalanche | Visa (19), Store card (21), Car loan (28) | 2 yr 4 mo | $2,503.71 |
| Snowball | Store card (6), Visa (21), Car loan (28) | 2 yr 4 mo | $2,625.49 |
Both finish in 28 months here, but the avalanche saves $121.78 in interest, while the snowball clears its first debt in month 6 instead of month 19.
Avalanche or snowball?
The avalanche is designed to cost the least interest. The difference is usually small when your debts have similar rates, and bigger when one debt has a much higher APR than the rest.
The snowball has a behavioral case: a study of about 6,000 people in a debt settlement program (Gal and McShane, 2012) found that people who paid off individual debts were more likely to go on to clear all their debt. If quick wins keep you on track, that can be worth more than the interest saved.
Things to keep in mind
- Keep the total steady. The plan works because you keep paying the same total as debts are cleared - that is where the rollover comes from.
- Minimums are kept fixed. Card minimums usually fall as balances fall; paying the same amount anyway is what this plan assumes, and it gets you out of debt faster.
- No new borrowing. New charges on any card slow the plan down.
- Interest is estimated monthly. Many cards charge interest on your average daily balance, so real figures can differ slightly.
- Promotional rates end. If a 0% offer will run out before you finish, enter the rate you will pay afterward. For a single card, the Credit Card Payoff Calculator shows a month-by-month picture.
Frequently asked questions
What is the debt avalanche method?
You pay the minimum on every debt and put any extra money toward the debt with the highest interest rate. When it is paid off, its payment rolls over to the next-highest rate. It keeps total interest as low as possible.
What is the debt snowball method?
You pay the minimum on every debt and put any extra money toward the smallest balance. Clearing whole debts quickly frees up their payments and gives you early wins, though it can cost more interest than the avalanche.
Which method should I choose?
If you will stick with either, the avalanche saves the most interest. If clearing whole debts quickly keeps you motivated, the snowball may help you finish. Running both here shows exactly what the choice costs.
What if my budget only covers the minimums?
There is no extra money at first, but as each debt is paid off its minimum rolls over to the next, so the order still matters a little. Adding even a small amount above the minimums speeds everything up.
Sources
- Can Fighting Small Battles Help Win the War? Evidence from Consumer Debt Management - Gal D, McShane BB, Journal of Marketing Research, 2012 (Kellogg School of Management)
- A box on my credit card bill says that I will pay off the balance in three years if I pay a certain amount. What does that mean? - Consumer Financial Protection Bureau