How this debt payoff planner works
Add each debt with its balance, APR and minimum monthly payment, then enter any extra amount you can commit every month. The planner simulates your payments month by month, charging each debt interest at its APR ÷ 12.
Every month, each debt receives its minimum. Under the snowball method, all extra money goes to the smallest balance; under the avalanche method, it goes to the highest APR. When a debt is paid off, its minimum rolls into the next target — that rollover is what makes both methods accelerate over time. The minimum-only plan pays just the minimums with no extra and no rollover, as a baseline.
Pick a strategy card to update the summary, payoff order, stacked balance chart and month-by-month plan. Your debts are kept in this browser, and Save plan adds a copy to My Money.
Worked example
Take three debts: a $6,500 credit card at 27.9% with a $195 minimum, a $14,000 car loan at 7.5% with a $350 minimum, and a $1,200 store card at 18.9% with a $40 minimum — plus $200 extra a month, for $785 in total payments.
The snowball method clears the store card first, in month 6, then the credit card and finally the car loan, for about $4,130 in interest. The avalanche method attacks the 27.9% credit card first and pays about $3,950 — roughly $180 less — while finishing in the same 33 months. Paying minimums only takes about 65 months and costs around $8,750 in interest, so either plan saves more than two and a half years and roughly $4,600.
Snowball vs. avalanche: what's the difference?
Both methods follow the same rules: pay every minimum, put all extra money toward one target debt, and roll each freed-up minimum into the next target. The only difference is the order. The avalanche method targets the highest interest rate first, which mathematically minimizes total interest. The snowball method targets the smallest balance first, which produces the fastest early wins.
When your highest-rate debt is also small, the two methods are nearly identical. When a large balance carries the highest rate, avalanche saves more, but the first payoff may take a long time.
Which method should you choose?
If you are confident you'll stick with the plan, avalanche costs less. If you've struggled to stay motivated, research on consumer debt repayment suggests that closing out individual accounts can help people keep going, which is the snowball's strength. The difference in interest is often smaller than people expect — this planner shows the exact gap for your debts, so you can decide whether quick wins are worth the price.
A hybrid works too: knock out one or two tiny balances for momentum, then switch to avalanche order for the rest.
Why the extra amount matters most
Strategy order matters, but the size of your monthly commitment matters far more. Moving from minimums to minimums plus $200 typically cuts years off repayment, while switching between snowball and avalanche usually changes the result by months. Look for the extra in your budget first: recurring subscriptions, insurance re-shopping, a side income stream or a raise you direct to debt before it reaches your spending.
Keeping the plan on track
Protect a starter emergency fund of $500 to $1,000 so a surprise expense doesn't go back on a card. Automate minimums on every account to avoid late fees and penalty rates, then make the extra payment manually to your target each month so you see progress. Revisit the plan whenever a balance, rate or income changes — save a new version to My Money to track how far you've come.
When to consider other options
If your minimums alone strain your budget, a lower-rate personal loan, a 0% balance transfer or a nonprofit credit counseling agency's debt management plan may reduce your rates. Be cautious with debt settlement companies, which can damage your credit and charge large fees. A reputable credit counselor affiliated with the National Foundation for Credit Counseling can review your situation, often for free.
Frequently asked questions
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Open calculatorNot financial advice. ClearCalc provides estimates for educational purposes only. Results depend on the assumptions you enter and may differ from offers from lenders or institutions. Consult a qualified professional before making financial decisions.