Debt Payoff Calculator: Snowball vs Avalanche
List your debts and what you can pay each month, and see when you’ll be debt-free with the snowball and the avalanche method, and how much interest each one costs. Free, no sign-up.
On top of all the minimum payments. Even a small amount shortens the timeline.
Snowball
Smallest balance first- Debt-free in
- 2 yr 9 mo
- Total interest
- $3,047.27
- Line of credit · month 13
- Credit card · month 23
- Car loan · month 33
Avalanche
Highest interest rate first- Debt-free in
- 2 yr 9 mo
- Total interest· Less interest
- $2,700.19
- Credit card · month 16
- Line of credit · month 22
- Car loan · month 33
Avalanche saves $347.08 in interest. Snowball pays off your first debt 3 months sooner.
Find the extra money each month
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Debt snowball vs debt avalanche
Both methods start the same way: pay the minimum on every debt, then put every extra dollar toward one debt at a time. When that one is paid off, its minimum payment rolls into the extra, and the next debt gets paid down faster. The difference is which debt comes first.
The avalanche goes after the highest interest rate first. It always costs the least interest, often by hundreds of dollars on credit card debt. With the example on this page (a credit card, a car loan and a line of credit, plus C$200 a month extra), avalanche saves about C$347 in interest compared with snowball.
The snowball goes after the smallest balance first. It costs a bit more, but you clear a whole debt sooner, in month 13 instead of month 16 in the same example, and fewer bills each month can make it easier to stick with.
The calculator adds interest monthly at each debt’s rate and assumes your payments stay the same until you’re debt-free. Real minimum payments on credit cards often shrink as the balance falls; keeping them fixed, as here, gets you out sooner.
Questions people ask
Is the debt snowball or avalanche method better?
The avalanche, highest interest rate first, always costs the least interest. The snowball, smallest balance first, pays off a whole debt sooner, which keeps many people going. If your rates are close, the difference is small, so pick the one you will stick with.
How much faster can I pay off debt with an extra payment?
Often a lot. In this calculator’s example of three debts totalling C$19,500, paying only the minimums takes 51 months; adding C$200 a month cuts it to 33 months and saves over C$2,000 in interest.
Should I pay off my credit card or line of credit first?
With the avalanche method, whichever has the higher interest rate. Credit cards in Canada often charge around 20% or more, much higher than most lines of credit, so the card usually comes first.
Should I save or pay off debt first?
A common approach is to build a small emergency fund first, so a surprise doesn’t go on a credit card, and then put extra money toward high-interest debt.
Does consolidating my debt help?
It can, if the new loan has a lower interest rate than your current debts and you stop adding to the old balances. Compare the total interest, not just the monthly payment: a longer term can lower the payment but cost more overall.