Debt Snowball Calculator

What this calculator does

This payoff calculator compares the snowball idea of paying the smallest balance first with the avalanche approach of targeting the highest APR first. Both roll freed-up payments into the next debt.

Formula used

Each month interest is added to every debt, minimum payments are applied, and the extra payment goes to the selected target debt. When a debt is cleared, its payment is rolled into the next balance chosen by the strategy.

How to read the result

Snowball can be motivating because it creates early wins. Avalanche is usually cheaper when interest rates differ because more money goes to the highest APR first. Compare the result with lender terms and your budget.

Assumptions

• Models three debts.
• Assumes fixed APRs and fixed minimum payments.
• Does not include fees, missed payments or promotional rate changes.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions