finance calculator
Compare debt snowball and avalanche payoff strategies and estimate exactly how long it will take to become completely debt free.
A debt payoff plan pays every minimum each month, then sends all spare money to one target debt: the highest interest rate first under the avalanche method, or the smallest balance first under the snowball. Interest accrues monthly at APR ÷ 12. Three debts totalling $16,000 at 12.5% to 21.99% APR, paid at $690 a month ($490 of minimums plus $200 extra), clear in 28 months with about $3,141 of interest.
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Debt-free timeline
2 years, 4 months
Tip
Debt payoff is a journey. Save this planner to adjust extra payment amounts, update credit balances, and track your acceleration timeline.
Summary
Debt-free timeline
2 years, 4 months
Avalanche strategy selected.
Total debt
$16,000
Starting debt across all entries.
Total interest
$3,141
Estimated interest during payoff.
Monthly payment
$690
Minimums plus extra payment.
Comparison
Compare the starting balances included in this payoff strategy.
| Item | Value |
|---|---|
| Card 1 | $5,000 |
| Card 2 | $3,000 |
| Loan | $8,000 |
Trend
A sampled view shows the combined debt balance declining month by month.
| Item | Value |
|---|---|
| M1 | $15,527 |
| M3 | $14,561 |
| M5 | $13,564 |
| M7 | $12,537 |
| M9 | $11,479 |
| M11 | $10,388 |
| M13 | $9,388 |
| M15 | $8,236 |
| M17 | $7,051 |
| M19 | $5,832 |
| M21 | $4,579 |
| M28 | $0 |
Full amortization schedule
Monthly view shows the full exact schedule. Quarterly and yearly views summarize the same monthly schedule. Weekly view is a weekly equivalent split for quick planning.
Swipe sideways to view all columns.
Scroll within the table to see every row, or switch to Yearly above for a shorter one-row-per-year summary.
| Period | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| Month 1 | $690 | $473 | $217 | $15,527 |
| Month 2 | $690 | $480 | $210 | $15,048 |
| Month 3 | $690 | $487 | $203 | $14,561 |
| Month 4 | $690 | $494 | $196 | $14,066 |
| Month 5 | $690 | $502 | $188 | $13,564 |
| Month 6 | $690 | $510 | $180 | $13,055 |
| Month 7 | $690 | $517 | $173 | $12,537 |
| Month 8 | $690 | $525 | $165 | $12,012 |
| Month 9 | $690 | $533 | $157 | $11,479 |
| Month 10 | $690 | $541 | $149 | $10,938 |
| Month 11 | $690 | $550 | $140 | $10,388 |
| Month 12 | $567 | $435 | $132 | $9,953 |
| Month 13 | $690 | $564 | $126 | $9,388 |
| Month 14 | $690 | $572 | $118 | $8,816 |
| Month 15 | $690 | $580 | $110 | $8,236 |
| Month 16 | $690 | $588 | $102 | $7,648 |
| Month 17 | $690 | $597 | $93 | $7,051 |
| Month 18 | $690 | $605 | $85 | $6,446 |
| Month 19 | $690 | $614 | $76 | $5,832 |
| Month 20 | $690 | $622 | $68 | $5,210 |
| Month 21 | $690 | $631 | $59 | $4,579 |
| Month 22 | $690 | $640 | $50 | $3,940 |
| Month 23 | $690 | $649 | $41 | $3,291 |
| Month 24 | $690 | $656 | $34 | $2,635 |
| Month 25 | $690 | $663 | $27 | $1,973 |
| Month 26 | $690 | $669 | $21 | $1,303 |
| Month 27 | $690 | $676 | $14 | $627 |
| Month 28 | $633 | $627 | $7 | $0 |
Guide
List each debt's balance, annual interest rate, and minimum payment, then enter the extra amount you can put toward payoff each month and choose a strategy (Avalanche or Snowball).
The calculator simulates the balances month by month (applying interest, then minimum payments, then concentrating your extra payment on the priority debt) until every balance reaches zero, returning your total debt, required monthly payment, payoff timeline, and total interest paid.
Credit card 1: $5,000 balance, 18.99% APR, $150 minimum. Credit card 2: $3,000 balance, 21.99% APR, $90 minimum. Personal loan: $8,000 balance, 12.5% APR, $250 minimum. Extra payment: $200/month.
Total debt across all three accounts: $16,000. Required total monthly payment (minimums plus extra): $150 + $90 + $250 + $200 = $690.
Payoff timeline: 28 months (about 2 years, 4 months).
Total interest paid: ≈ $3,140.65. Total paid across the payoff period: ≈ $19,140.65.
In this specific example, Avalanche and Snowball land on the identical payoff order and identical total interest, because Credit Card 2 happens to carry both the highest interest rate and the smallest balance. The two strategies only diverge in total interest when the highest-rate debt and the smallest-balance debt are different accounts.
Paying off multiple debts requires a structured plan rather than making random extra payments. The two most effective, structured debt acceleration models are the Debt Avalanche and the Debt Snowball.
Both strategies require you to list all debts, make the minimum payments on all accounts, and dedicate any extra funds (your "debt snowball") to a single target debt. Once that target debt is fully paid off, its minimum payment and the extra funds roll into the next target debt, creating a compounding acceleration effect.
The Debt Avalanche strategy prioritizes paying off debt based on interest rate, targeting the account with the highest APR first, regardless of the balance size.
Math Process: List debts from highest interest rate to lowest. Direct all extra cash to the highest APR debt. Once cleared, target the next highest APR debt.
Pros: Mathematically optimal. It minimizes total interest paid and results in the shortest overall payoff timeline. Ideal for analytical individuals focused on efficiency.
The Debt Snowball strategy prioritizes paying off debt based on balance size, targeting the account with the smallest outstanding balance first, regardless of its interest rate.
Math Process: List debts from smallest balance to largest. Direct all extra cash to the smallest balance. Once cleared, roll its entire payment into the next smallest balance.
Pros: High psychological momentum. Clearing small accounts quickly provides "quick wins" that boost motivation, which behavioral psychology shows is critical for maintaining consistency.
The simulator calculates month-by-month debt declines using the following logic:
1. For each month t, add interest to all active debts: B_(i,t) = B_(i,t-1) × (1 + r_i / 12).
2. Subtract required minimum payments from each balance: B_(i,t) = B_(i,t) - M_i.
3. Identify the target debt based on the strategy (highest APR for Avalanche, smallest balance for Snowball).
4. Apply the extra payment amount to the target debt: B_(target,t) = B_(target,t) - Extra.
5. If the target debt is paid to zero, add its minimum payment to the extra cash pool for the next month. Repeat until all balances reach zero.
Before launching an aggressive debt payoff campaign, build a mini-emergency fund (typically $1,000 or one month of essential expenses). Without this buffer, unexpected medical bills or auto repairs will force you to borrow more, disrupting your repayment momentum.
Size that starter buffer with the emergency fund calculator, and if credit cards are your highest-rate debt, drill into a single-card payoff timeline with the credit card payoff calculator.
If a mortgage or other major loan is on the horizon, see how this total debt load affects your qualifying ratio with the debt-to-income ratio calculator.
Debt Avalanche
A debt payoff strategy prioritizing accounts with the highest interest rates first.
Debt Snowball
A debt payoff strategy prioritizing accounts with the smallest balances first.
Credit Utilization
The percentage of available credit card limits currently being utilized, affecting credit scores.
Formula
Each month: add interest, pay minimums, then apply extra payment by payoff strategyAvalanche prioritizes highest interest debt first; snowball prioritizes smallest balance first.
Step by step
Example
With $16,000 in debt and $200 extra per month, the calculator estimates payoff time, interest, and total repayment.
Related guides
Guide
Compare debt snowball and avalanche payoff methods, see how ordering changes interest and timing, and model both with the DTC calculator.
Guide
Learn how fixed loan payments are calculated, why term length changes total interest, and how the DTC loan calculator matches amortization math.
Guide
Estimate credit card payoff time and interest, compare higher payments and transfers, and understand the limits of the DTC monthly payoff model.
Template
See exactly where extra payment money is coming from with a running balance and category-level spending dashboard.
Template
Track debt payments against income timing with the Personal Cash Flow Tracker's Debt Payments category.
Last updated . This is the date the calculator or its guidance last changed, taken from our revision history rather than from the last time the site was deployed.
This calculator implements published formulas. Each source below is the primary reference for a specific part of the calculation, so you can verify the result independently.
Board of Governors of the Federal Reserve System
The published series for average US consumer credit interest rates, used here as the reference point when no rate is supplied for a debt.
Read how we select formulas, review calculations, and handle corrections in our methodology. Found an error? Tell us and we will correct it and note the change.