Debt payoff calculator: snowball vs avalanche
Enter up to six debts with their balance, interest rate and minimum payment, add any extra you can pay, and see how long each method takes and what it costs.
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What is the best way to pay off several debts?
Pay the minimum on every debt, then put every spare dollar toward one target, and when that debt is gone, move its whole payment to the next. Two methods differ in the target. The avalanche targets the highest interest rate first, which costs the least in interest. The snowball targets the smallest balance first, which clears debts sooner and gives quick wins. The calculator runs both for your debts and shows the time, the interest and the order of payoff.
Why we built this calculator
Most people with debt owe in several places: a credit card, a line of credit, a store card, a car loan, a student loan. Each has its own balance, rate and minimum, and the question 'which one should I pay first?' has real money riding on it. The two best-known answers, the debt avalanche and the debt snowball, are simple to describe but hard to compare in your head, because the effect of rolling a cleared debt's payment into the next one builds up month by month. This calculator runs the full month-by-month simulation for both, with your numbers, so you can see the difference in months and in dollars before you choose.
Everything is worked out in your browser. Nothing you enter is sent anywhere.
How it works
Each month, interest is added to every debt (balance × APR ÷ 12, rounded to cents). Then the plan makes payments from a fixed monthly budget, which is the sum of all the minimums plus your extra amount. First every debt gets its minimum (or its remaining balance if smaller). Whatever is left of the budget goes to the target debt: the highest-rate debt for the avalanche, the smallest balance for the snowball. When a debt reaches zero, its minimum is no longer needed, so the budget stays the same but more of it flows to the next target, which is why the payoff speeds up. The calculator repeats this until every debt is clear (or flags that the payments are too low), and compares the two plans. The avalanche never costs more interest than the snowball when the same total is paid; the snowball's advantage is psychological: the first debt disappears sooner.
How to use it
- List your debts: a name, the current balance, the annual interest rate and the minimum monthly payment. Leave unused rows empty.
- Add any extra amount you can put toward debt each month.
- Compare the two plans: time to be debt-free, total interest and the order debts are cleared.
- Pick the one you will stick with. Adding even a small extra, or keeping the old payment going after a debt is cleared, is what makes either method work.
- Update the balances every few months and run it again.
Avalanche or snowball?
How the two compare.
| Avalanche | Snowball | |
|---|---|---|
| Target first | Highest interest rate | Smallest balance |
| Total interest | The lowest possible | Same or higher |
| First debt cleared | Later, if it is a large balance | Soonest |
| Best for | Saving the most money | Staying motivated |
Use cases
- Planning a payoff for a credit card, a line of credit and a store card
- Seeing what an extra $100 a month does
- Deciding between the two famous methods with your own numbers
- Finding a debt-free date to aim for
- Showing a partner or a credit counsellor the plan
- Checking whether consolidating at a lower rate would help
Problems you may run into
Most trouble is about inputs.
| What you see | Likely cause | What to do |
|---|---|---|
| 'These payments do not clear the debts' | A minimum is no more than the monthly interest on that debt | Raise that minimum or add an extra amount |
| The plans show the same result | One debt has both the highest rate and the smallest balance | That is normal; both methods then choose the same target |
| My real statement differs | Banks work out daily interest, and fees or new purchases change balances | Use this as a guide and update the balances each month |
| I have a mortgage as well | A mortgage is usually kept apart, with a lower rate and a long term | Leave it out and treat extra payments on it as a separate decision |
| I have a 0% promotional rate | The rate changes later | Enter 0% now and run the calculation again when it ends |
| More than six debts | The planner holds six | Group the smallest ones, or run it twice |
Getting help
If the payments are too much, do not wait: lenders offer hardship plans, and free, non-profit credit counselling is available in Canada. A counsellor can set up a debt management plan, which can lower the interest rate you pay and gives you a single payment. This is general information, not financial advice.
The formula
How the answer is worked out.
each month: interest = balance × APR ÷ 12 for every debt (rounded to cents)budget = sum of all minimums + extra, paid every month until everything is clearpay each minimum, then give the rest to the target: the highest-rate debt (avalanche) or the smallest balance (snowball)when a debt is cleared its payment moves to the next target; repeat until all are zero
Up to six debts, 100 years maximum. Interest is monthly and rounded; real accounts use daily interest, fees and changing rates. The same total payment is used in both plans, so the comparison is fair.
Example: three debts with $200 extra
A card ($3,500 at 19.99%, $90 minimum), a line of credit ($8,000 at 9.5%, $160) and a store card ($900 at 26.99%, $35), plus $200 extra a month.
- Budget$90 + $160 + $35 + $200 = $485 a month
- Avalanche orderstore card, then credit card, then line of credit
- Snowball orderstore card ($900), then credit card ($3,500), then line of credit ($8,000)
2 years 6 months with about $1,927 in interest, the same for both methods
Here the two orders match, so the results are identical. With a $1,000 balance at 5% and a $5,000 balance at 24% (minimums $50 and $100, $50 extra), the avalanche saves about $169 in interest and a month.
Terms on this page
- Avalanche
- Paying the highest-interest debt first.
- Snowball
- Paying the smallest balance first.
- Minimum payment
- The smallest amount a lender requires each month.
Common questions
What is the debt avalanche?
Paying the minimum on every debt and any extra on the highest-interest debt first. It costs the least in interest.
What is the debt snowball?
Paying the minimum on every debt and any extra on the smallest balance first. It clears debts sooner.
Which is better?
The avalanche saves the most money; the snowball can be easier to stick with. The calculator shows the difference for your debts.
Does it include fees or new purchases?
No. Assume you stop adding to the balances.
What if a minimum is too low?
If it does not cover the interest, the balance never falls, and the calculator tells you.
Is anything I enter sent to a server?
No. The calculation happens in your browser and nothing you type leaves your device.
Where these numbers come from
- Financial Consumer Agency of Canada — Paying off your credit card How the minimum payment is set (a flat amount, usually $10, plus interest and fees, or the higher of about $10 or 3% of the balance; 5% for Quebec residents since August 1, 2025) and the $2,000 at 18% example.
- Wikipedia — Debt snowball method How the snowball and the related avalanche method work.
- FCAC — Credit Card Payment Calculator The government's own payoff calculator, for comparison.
Last verified 2026-10-25 The method on this page is checked against the sources above at least once a year. Spotted something out of date? Tell us and we will fix it.
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