What is the debt avalanche method?

You pay minimums on every debt and put all extra money toward the debt with the highest interest rate. When it is gone, its minimum payment joins your extra money against the next-highest rate. It is the cheapest payoff order in total dollars.

What is the debt snowball method?

You pay minimums on every debt and put all extra money toward the smallest balance first. Each quick win frees another minimum payment and keeps motivation high. It can cost slightly more in interest than the avalanche.

How fast can I get out of debt?

It depends on your balances, rates and the extra you can pay each month. Enter your real numbers in the planner: even $50 extra per month, with minimums rolling over as debts close, usually cuts years off the minimum-payment path.

Debt Payoff Planner — Free Snowball & Avalanche Calculator

Where the money goes

The plan, line by line

Your balance, month by month

The solid line is your plan. The dashed line is what minimum payments alone would do. Hover to compare any month.

Your order of attack

How we calculate

What is included

Interest compounds monthly at each debt’s APR (APR ÷ 12 per month). Every open debt gets its minimum payment each month. Your extra money — plus the freed-up minimums of every debt you have already killed — attacks one target debt: the highest APR first (avalanche) or the smallest balance first (snowball). The one-time payment hits the target debt in month one.

What is estimated or left out

This is a planning estimate, not advice. Real card minimums shrink as the balance falls (we keep them fixed, which is also the smarter way to pay); rates can change; new spending on the cards is not modeled — the plan assumes you stop adding to the balances. Fees and penalty APRs are not included.

The formula, in plain words

each month:  every debt grows by  balance × APR ÷ 12
             every debt gets its minimum payment
             extra money + freed minimums  →  one target debt
target debt: highest APR (avalanche)  or  smallest balance (snowball)

Common questions

Avalanche or snowball — which should I pick?: Avalanche (highest interest first) always costs the least in dollars. Snowball (smallest balance first) gives you a paid-off debt sooner, and that feeling keeps many people going. Toggle both above — if the difference is small, pick the one you will actually stick with.
Do minimum payments really change anything?: Minimums are designed to keep you in debt for years — on a typical card they mostly cover interest. Watch the dashed line in the chart: that is the minimum-payment path. Even a small fixed extra beats it badly.
Should I save or pay off debt first?: A common approach: keep a small cushion (about one month of essentials) so a surprise does not go back on the card, then attack the debt, then build the full emergency fund. Our Emergency Fund calculator sizes the cushion.

Debt Payoff Planner