Debt Payoff Planner
Use this free debt payoff planner to compare the snowball and avalanche methods, see your payoff order and find your debt-free date. Add up to five debts, type in an extra monthly payment, and both plans update straight away.
Debt 1
Debt 2
Debt 3
Debt 4
Debt 5
Snowball method (smallest balance first)
Payoff order:
Debt-free in: months, by
Total interest paid: $
Avalanche method (highest APR first)
Payoff order:
Debt-free in: months, by
Total interest paid: $
Avalanche saves: $ in interest compared with snowball.
Total balance after month 1: $. Total balance after month 2: $.
Estimates only – real payoff dates depend on your lender’s exact interest and fee rules. Nothing you type is saved or sent anywhere.
How to use this debt payoff planner
Step 1: Add each debt you want to pay off, up to five. For each one, type a name you will recognise, the balance you owe, the APR as a percentage, and the minimum monthly payment printed on your statement. Leave any debt rows you do not need blank.
Step 2: Type in an extra monthly payment, if you can afford one. It can be zero, but even a small extra amount makes a real difference, because every extra dollar goes to the debt you are targeting first, not to interest.
Step 3: Compare the two plans side by side. The snowball method clears the smallest balance first, and the avalanche method clears the highest APR first. For each one you see the payoff order, the month each debt is cleared, the total months to debt-free, the total interest, and the date you will be debt-free.
Worked example: two debts and 100 dollars extra a month
Take two debts. Debt A is 500 dollars at 10 percent APR, with a minimum payment of 25 dollars a month. Debt B is 1,000 dollars at 20 percent APR, with a minimum payment of 50 dollars a month. Add 100 dollars of extra payment a month, so you pay 175 dollars a month in total.
With the snowball method, the smallest balance goes first, so Debt A is the target. It is cleared in month 5, and you are debt-free in month 10, with total interest of 120.17 dollars. The quick win comes early, because a whole debt disappears after five months, and its 25 dollar minimum then moves to Debt B.
With the avalanche method, the highest APR goes first, so Debt B is the target. It is cleared in month 8, and you are still debt-free in month 10, but total interest is only 99.23 dollars. The avalanche saves 20.94 dollars compared with the snowball, because the expensive 20 percent debt is paid down before it can pile up as much interest.
Snowball vs avalanche
The snowball method wins on motivation. Paying off a whole debt, even a small one, feels like progress, and that feeling keeps many people going when a long payoff would otherwise feel endless. Once the first debt is gone, its minimum payment rolls into the next debt, so each payoff gets faster. If you have struggled to stick to a plan before, the snowball is often the better choice.
The avalanche method wins on money. Interest is the cost of borrowing, and the highest APR costs the most for every dollar you owe. Clearing that debt first cuts the total interest you pay, and it usually, though not always, gets you debt-free sooner. The downside is that the first payoff can take longer to arrive, which can feel slow if your most expensive debt is also your biggest one.
Neither method is right for everyone. The best method is the one you will actually follow, month after month. If the difference in interest is small, pick the method that keeps you motivated. If the difference is large, and one debt has a much higher APR than the rest, the avalanche is hard to beat on cost alone.
What the extra payment does
Every extra dollar goes straight to the target debt, on top of its minimum payment, and it pulls your debt-free date closer. That is because the target debt shrinks faster, so less interest builds up on it next month, and the month after that, and so on. The effect compounds over time, just as interest does, but in your favour.
A larger extra payment also frees up money sooner. When a debt is cleared, its minimum payment joins the extra payment and moves to the next debt, so the amount you pay towards the target grows with each payoff. That is why the last debts disappear much faster than the first one did, and why a steady extra payment, even a modest one, can cut months off a payoff plan.
If you cannot afford an extra payment right now, start with the minimums and add extra money whenever you can, such as a tax refund, a bonus, or money saved by cutting a subscription. Type the new extra amount into this debt payoff planner and the debt-free date will move. The plan is not fixed, and every change you make to your payments changes the result.
Frequently asked questions
What is the debt snowball method?
The snowball method pays off your debts in order of balance, smallest first, while you keep paying the minimum on all the rest. When the smallest debt is gone, its payment rolls into the next smallest debt, so the payoff speeds up as debts disappear.
What is the debt avalanche method?
The avalanche method pays off your debts in order of APR, highest first, while you keep paying the minimum on all the rest. It targets the most expensive debt first, so it usually costs less in total interest than the snowball method.
Which method is better?
It depends on you. The avalanche usually saves more money, because it clears the highest APR first. The snowball often works better in practice, because clearing a debt quickly keeps you motivated. Pick the one you will stick with, and check the interest difference in this planner before you decide.
What if my minimum payment is less than the interest?
The debt never shrinks. Each month the interest added is more than the payment, so the balance grows instead of falling. Raise the payment, add an extra monthly amount, or talk to your lender about a lower rate or a different plan.
Is this financial advice?
No, it is a calculator. It shows what happens to your debts under the snowball and avalanche methods, using your own numbers. For real debt problems, talk to a licensed financial adviser or a debt counsellor in your country.