Debt Payoff Strategy Calculator
Add your debts with their balances, rates, and minimum payments, plus any extra you can put toward payoff each month, to compare two popular strategies: the snowball method (paying off the smallest balance first) and the avalanche method (paying off the highest rate first).
How the Debt Payoff Strategy formula works
Both strategies pay minimums on every debt, then direct all extra payment toward one priority debt at a time:
Snowball order: smallest balance first Avalanche order: highest interest rate first Once a debt is paid off, its payment amount rolls into the next priority debt
Step-by-step calculation
- Sort debts by balance (snowball) or by interest rate (avalanche).
- Pay the minimum on every debt, and direct all extra budget toward the top-priority debt.
- Once the priority debt is paid off, roll its full payment amount into the next debt in line.
- Repeat until every debt is paid off, tracking total months and total interest paid for each strategy.
Worked example
Three debts — a $1,000 balance at 22%, a $4,000 balance at 12%, and a $8,000 balance at 6% — with $300/month extra: snowball tackles the $1,000 debt first (fastest early win), while avalanche tackles the 22% debt first regardless of balance. Avalanche typically saves more total interest, while snowball often provides faster early motivation from eliminating a full debt sooner.
Frequently asked questions
Which strategy saves more money?
Avalanche (highest rate first) almost always saves more in total interest, since it targets the most expensive debt first. Snowball can cost slightly more in interest but is often easier to stick with, since eliminating a full balance early provides a motivating early win.
Do I still pay minimums on every debt with both strategies?
Yes — both methods require paying at least the minimum on every debt to avoid penalties or damage to credit, with only the extra payment budget directed toward the priority debt.