Which debt payoff method saves the most money?

The avalanche method almost always saves the most money because it eliminates your highest-APR balances first, so less interest accrues over time. This calculator shows you the exact dollar difference between the two strategies for your specific mix of debts so you can decide whether the snowball's motivational wins are worth the extra cost.

Does paying a little extra each month really make a difference?

Yes, often a dramatic one. Every extra dollar goes straight to principal on your target debt, which shrinks the balance faster and cuts the interest that would have compounded on it. Even an extra $50 to $100 a month can shave months or years off your payoff date and save thousands in interest.

What if my minimum payments don't cover the interest?

If a debt's minimum payment is smaller than the interest it accrues each month, the balance grows instead of shrinking and it can never be paid off. The fix is to add an extra monthly payment or raise the minimum so you start shrinking what you owe (the principal) instead of just covering the interest. This calculator flags that situation when it happens.

For educational purposes only — not financial advice. Learn about our editorial process

C.15 · loans

Debt Payoff Calculator — snowball vs. avalanche

Enter every balance, its APR, and its minimum payment, then compare the two most popular payoff strategies side by side. See your real debt-free date and exactly how much interest each method costs.

Method

Snowball & avalanche

Freed-up payments roll to your next debt

Your debts

Amount owed

Rate (APR)

Min. payment

Amount owed

Rate (APR)

Min. payment

Amount owed

Rate (APR)

Min. payment

Payoff strategy

Extra monthly paymentOn top of the minimum payments your lenders require

Debt-free in · Avalanche plan

73months

6 yr 1 mo · $10,979 total interest

Total interest you’ll pay

$10,979

Total you’ll pay (with interest)

$39,979

Interest saved with avalanche

$810

What you still owe over time

Avalanche plan — each shaded area is one debt; together they add up to everything you still owe

Side by side

Snowball vs. avalanche

Same debts, same extra payment — here’s how the two strategies compare.

Avalanche

Highest rate (APR) first

Costs less

Debt-free in: 6 yr 1 mo
Total interest you’ll pay: $10,979

Snowball

Smallest amount owed first

Debt-free in: 6 yr 3 mo
Total interest you’ll pay: $11,789

The avalanche saves $810 in interest and 2 months versus the snowball. Pick whichever you’ll stick with.

Payoff order

Your payoff order (Avalanche plan)

The order each debt is eliminated, and the month it’s gone.

Car LoanPaid off · month 52 (4 yr 4 mo)
Credit CardPaid off · month 66 (5 yr 6 mo)
Student LoanPaid off · month 73 (6 yr 1 mo)

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Common questions

Debt payoff calculator FAQ

The snowball pays off your smallest balance first to build momentum with quick wins, while the avalanche pays off your highest-interest debt first to minimize the total interest you pay. The avalanche is usually cheaper and faster mathematically; the snowball can be easier to stick with psychologically. Both beat making only minimum payments.

For educational purposes only -- not financial advice. Results are estimates that assume fixed APRs and on-time payments; your actual payoff may differ. Consult a financial professional for your specific situation.

Debt Payoff Calculator — snowball vs. avalanche

Your payoff order (Avalanche plan)

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Consolidate your debt

SoFi Personal Loan

LightStream Personal Loan

Marcus by Goldman Sachs Personal Loan

Debt payoff calculator FAQ

What is the difference between the debt snowball and the debt avalanche?

Which debt payoff method saves the most money?

Does paying a little extra each month really make a difference?

What if my minimum payments don't cover the interest?

Debt Payoff Calculator — snowball vs. avalanche

Your payoff order (Avalanche plan)