UNITED STATES · DEBT REPAYMENT STRATEGIES
Debt Avalanche vs Snowball Payoff Calculator
Should extra cash pay down the smallest bill first, or the debt charging the most interest? See the cost of each approach for two loans before choosing a workable repayment routine.
Enter your figures
Figures are calculated in this browser; entered personal amounts are not required to be sent to our servers.
Calculation results
Minimums and interest are held fixed; balance-transfer terms, fees and penalty rates can change outcomes.
Estimate only. A bank, employer, tax office or lender may apply additional conditions. See the scope and source below.
When and how to use this calculator
With Debt A $3,000 at 30% APR and Debt B $1,000 at 5% APR, paying extra towards A usually cuts more interest, while snowball may finish the $1,000 debt earlier. Both approaches continue minimums on both accounts.
- Enter TWO different outstanding balances, their contractual nominal annual rates and actual scheduled fixed monthly minimum payments.
- Add only an EXTRA amount you can reliably afford every month; the model keeps the combined total monthly budget unchanged even after the first loan is cleared.
- Compare estimated interest savings and payoff months. If your actual minimum payments depend on balances, ask the lenders for an updated schedule.
Understand your result
Exactly TWO debts, fixed nominal rates and fixed minimums, no fees, transfer promotions, penalty APR, changing rates, new borrowing or changing repayments. The monthly amount stays fixed and unused debt minimums roll to other debt.
Questions people ask
What does avalanche mean?
Pay all required minimums, then direct extra funds to the balance with the highest interest rate until it is cleared.
Why do people choose snowball?
It prioritizes the smallest balance, which can create an earlier psychological milestone even if it costs more interest.
Can I include an introductory 0% promotional card?
Only as a fixed hypothetical rate for the whole schedule. This model does not change the rate at an introductory expiry date.
Reference and calculation scope
Source material is provided for independent checking. Our calculator is not a government or bank service.