How to use this calculator
This calculator answers: Which payoff order — highest rate first or smallest balance first — gets me debt-free faster and cheaper?
Why this matters: The order you pay debts in decides how much interest you pay and how soon you get your first win — the two strategies can differ by thousands of dollars.
- Add each debt with its Balance ($), APR (%), and Min. payment ($), then set “Extra payment per month” — the money above all minimums that the strategies fight over.
- Results recalculate live as you type; the “Compare strategies” button re-runs the full breakdown.
- Read “Your comparison”: months to debt-free and total interest for each method, plus the payoff order. Try raising the extra payment by $100 and watch how the interest gap changes.
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Your payoff plan as a spreadsheet you keep. Pro adds: the side-by-side strategy showdown, extra-payment scenarios, and a month-by-month schedule. One-time purchase, yours forever.
Get the Pro Dashboard — $9.99How the comparison works
- Every month, simulated: interest accrues on each balance at APR ÷ 12, every minimum gets paid, then your extra payment — plus any minimums freed up from debts already cleared — goes to a single target debt.
- Avalanche target: the unpaid debt with the highest APR. Snowball target: the unpaid debt with the smallest balance.
- Freed minimums roll forward. When a debt hits zero, its old minimum joins the attack on the next target. This "snowballing" of payments is where most of the acceleration comes from.
- The honest tradeoff: avalanche wins on total interest, always. Snowball usually delivers the first zero balance sooner. If that early win is what keeps you paying, it can beat the mathematically perfect plan you quit.
Frequently asked questions
Which is better: the debt avalanche or the debt snowball?
Mathematically, the avalanche (highest interest rate first) always costs less in total interest. The snowball (smallest balance first) usually clears its first debt sooner, which many people find more motivating. Research on real debt accounts found that closing an account — any account — predicted eventually clearing all debt, so if quick wins keep you consistent, the snowball's slightly higher cost can be worth it.Source: Kettle et al. (2016), Journal of Consumer Research 43(3), via EconPapers
How does this calculator decide the payoff order?
Each simulated month it applies interest, pays every minimum, then sends your extra payment (plus the minimums freed up from debts you've already cleared) to one target debt: the highest APR for avalanche, the smallest balance for snowball. It repeats until every balance is zero.
What if I can only afford minimum payments?
Then both strategies produce the same result — with no extra payment there is nothing to prioritize. The avalanche/snowball choice only matters once you pay more than the minimums.
What does the negative amortization warning mean?
It means a debt's minimum payment is smaller than one month of interest, so the balance grows even while you pay. That debt can never be cleared at the current payment — you need to pay more than the monthly interest charge.
Does the calculator assume I stop using the cards?
Yes. It assumes no new charges. New spending while paying down debt will change every number, usually for the worse.
How accurate is the monthly interest math?
Most US credit cards accrue interest daily, but monthly compounding at APR ÷ 12 is a very close approximation and matches how payoff timelines are conventionally quoted. Treat results as planning estimates, not bank statements.
Which is better: debt snowball or avalanche?
The avalanche (highest APR first) always costs less in interest — the math is not close. The snowball (smallest balance first) wins only if you need early payoffs to stay motivated. Run both and compare the total interest difference before choosing.
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- Balance Transfer — is that 0% offer actually cheaper once the transfer fee is added?
- Promo Juggler — sequence multiple 0% cards without missing an expiry date.
- Debt vs Invest — guaranteed debt savings vs. expected investment growth.
Related guides
- Debt Snowball vs. Avalanche — which payoff method actually wins — and where psychology beats math.
- Pay Off Debt or Invest? — the interest-rate math that decides what to do with extra cash.
- The Minimum-Payment Trap — what $5,000 at 22% APR really costs on minimums alone.
- Consolidate, Balance Transfer, or Avalanche? — the total-cost comparison across three ways out.
- How Long to Pay Off $10,000? — minimums take 115 years; $300/month takes 52 months. The side-by-side.
- How Long to Pay Off $20K or $30K? — full payoff tables for larger balances at 22% APR.
Last updated: September 28, 2026