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Debt payoff calculator: avalanche vs snowball

Add your loans and cards, choose how much extra you can pay each month, and see both payoff orders side by side: how long until you are debt-free and how much interest each one costs.

Debt 1
Debt 2
Debt 3

Avalanche

Less interest

Highest interest first

Debt-free in1 year 10 months
Total interestUSD 1,455
Saved vs minimums onlyUSD 1,182
  1. Credit card: paid off in 11 months
  2. Personal loan: paid off in 1 year 1 month
  3. Car loan: paid off in 1 year 10 months

Snowball

Smallest balance first

Debt-free in1 year 10 months
Total interestUSD 1,542
Saved vs minimums onlyUSD 1,095
  1. Personal loan: paid off in 6 months
  2. Credit card: paid off in 1 year 1 month
  3. Car loan: paid off in 1 year 10 months
Track your payoff month by monthBudgetByChat’s free debt manager keeps this plan up to date as you pay, in any currency.
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Worked example

Three debts: a credit card (USD 3,000 at 24%), a car loan (USD 9,000 at 9%) and a personal loan (USD 1,500 at 14%), with minimum payments of USD 120, USD 300 and USD 80, plus USD 200 extra a month.

MethodDebt-free inTotal interestSaved vs minimums
Avalanche1 year 10 monthsUSD 1,455USD 1,182
Snowball1 year 10 monthsUSD 1,542USD 1,095

Avalanche clears the 24% card first, so less interest builds up: USD 87 less than snowball in this example. Snowball clears the small personal loan first, which feels faster. Both beat paying minimums alone by over USD 1,095.

How the calculation works

Every month, interest is added to each balance, every minimum payment is made, and the extra amount (plus the minimum of any debt already paid off) goes to the debt at the top of the list. It is the same simulation BudgetByChat’s debt manager runs. For the full comparison, read debt avalanche vs snowball.

Questions

Both pay every minimum, then put all extra money on one debt at a time. Avalanche targets the highest interest rate first, which usually costs the least interest. Snowball targets the smallest balance first, which gives quicker wins.

Its minimum payment rolls into the next debt in line, together with your extra payment. That roll-over is what makes both methods faster than paying minimums alone.

If your monthly payments are smaller than the interest added each month, the balance grows instead of shrinking and the debt can never be paid off. Raise the payment or look at refinancing the most expensive debt.

If the gap in interest is small, pick the one you will stick with. If one debt has a much higher rate (a credit card, for example), avalanche usually saves real money.

Yes. It is the same month-by-month simulation BudgetByChat's debt manager runs, so the numbers match what you see after you sign up.

Related

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