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Debt Payoff Calculator

See your debt-free date. Compare Snowball vs. Avalanche and find the fastest path out of debt.

Avalanche: pay highest interest rate first. Minimizes total interest paid.

Debt 1
$
%
$
Debt 2
$
%
$

Amount above and beyond the minimum payments

$
39 mo.Payoff time
$2,455.53Total interest
September 2029Payoff date
Strategy comparison
❄️ Snowball
$2,455.53 interest39 months — September 2029
🏔 Avalanche← active
$2,455.53 interest39 months — September 2029

Avalanche saves you $0.00 in interest.

How the Debt Payoff Calculator Works

Enter each debt with its current balance, annual interest rate, and minimum monthly payment. Then enter how much extra you can pay each month above the minimums. The calculator runs a month-by-month simulation to show exactly when you'll be debt-free and how much interest you'll pay.

The Snowball strategy pays off the lowest-balance debt first for psychological wins. The Avalanche strategy targets the highest interest rate first to minimize total interest paid. The comparison table shows which strategy saves more money for your specific situation.

Side-by-side, full schedule, shareable link

Snowball and Avalanche now always show both numbers at once. Previously you had to pick a strategy and run it, then switch and run it again. Now the comparison is right there: Snowball finish date, Avalanche finish date, and — most useful — how much extra interest Snowball costs compared to Avalanche for your specific debts. For some people that gap is $200. For others it's $4,000. Seeing the actual dollar difference is what makes the choice feel real. If you'd still rather go with Snowball for the psychological momentum, that's a valid call, the Avalanche savings callout isn't here to guilt you.

The CSV download now exports the full month-by-month schedule for every debt — not just the first 36 months. If you have a 7-year car loan, you get all 84 rows. A shareable URL encodes your debt list so you can revisit the exact scenario or hand it to a financial counsellor without re-entering everything. What's not here: automated suggestions for which debts to consolidate, or integration with bank accounts. The inputs stay private and local.

Avalanche vs Snowball: Which Method is Better?

Avalanche method: pay the minimum on every debt each month, then direct any extra money toward the debt with the highest interest rate. Once that debt is gone, roll its payment onto the next highest-rate debt. This approach is mathematically optimal, it minimizes the total interest you pay over the life of your debts.

Snowball method: same minimum-first discipline, but attack the smallest balance first regardless of interest rate. Research by Amar et al. (2011, Journal of Marketing Research) found this approach is psychologically effective — early payoffs create momentum and improve the likelihood of sticking with the plan. The emotional win of eliminating a debt entirely can be worth more than the math suggests.

The interest cost difference between the two methods is typically $500–$2,000 on a typical debt load — significant, but not catastrophic. More importantly, research suggests snowball users are more likely to actually complete their debt payoff, making the mathematically "worse" method often the better real-world choice for people who struggle with motivation.

Hybrid approach: use the snowball until 1–2 small debts are eliminated to build confidence, then switch to avalanche for the remaining (likely larger, higher-rate) debts. You get the psychological boost without giving up too much in interest savings.

Related tools: Compound Interest Calculator, Loan Calculator, and Percentage Calculator.

Limitations and What This Calculator Doesn't Handle

Fixed minimum payments: this calculator assumes a fixed minimum payment for each debt. In reality, credit card minimums decrease as your balance decreases (typically a percentage of the outstanding balance), which changes the payoff timeline — often making it longer than the simulation shows.

Variable interest rates: the calculator models a constant APR for each debt. Most credit cards have variable rates tied to the prime rate, which can shift by 1–2% over a multi-year payoff period.

Balance transfer fees and promotional APR: a 0% balance transfer offer can be a powerful tool, but it typically comes with a 2–5% transfer fee and reverts to a high rate after 12–21 months. This calculator doesn't model promotional periods — run those scenarios separately.

Tax-deductible debt: mortgage interest and student loan interest may be partially tax-deductible in some countries, which lowers the effective rate. A mortgage at 5% might have an effective after-tax rate closer to 3.5%. Factor that in separately when comparing debt payoff vs. investing.

New spending during payoff: the simulation assumes no new charges on your credit cards during the payoff period. If you continue spending, the actual payoff timeline will be longer. The calculator is most accurate as a planning tool when combined with a firm spending freeze on the accounts you're paying down.

Frequently Asked Questions

What's the difference between Snowball and Avalanche?
Snowball: pay minimum on all debts, put extra money toward the lowest balance. When that's paid off, roll its payment into the next. Psychologically motivating. Avalanche: same approach, but target the highest interest rate instead. Mathematically optimal, you pay less total interest.
How accurate is this calculator?
The calculator uses a month-by-month simulation with compound monthly interest (annual rate ÷ 12). Results are estimates — actual payoff may vary based on exact payment dates, lender policies, and whether interest compounds daily vs. monthly. Use it as a planning guide, not a guarantee.
What happens when a debt is paid off in the simulation?
When a debt is paid off, its minimum payment is automatically rolled into the extra payment pool for the next month. This is the 'debt rollover' technique that accelerates payoff — your available monthly payment grows as each debt disappears.
Which strategy should I actually choose?
If you need motivation to stay on track, choose Snowball — eliminating small debts quickly creates momentum. If minimizing total interest paid is your priority, choose Avalanche. The difference in total interest can range from negligible to hundreds or thousands of dollars depending on your debts.
How much does only paying the minimum cost me?
On a $5,000 credit card balance at 20% APR, paying only the minimum (~$100/month) takes approximately 8–9 years to pay off and costs roughly $4,000–$5,000 in total interest — nearly doubling the original debt. Increasing the payment to $200/month cuts this to about 2.5 years and ~$1,200 in interest. The difference between minimum payments and a fixed accelerated payment is one of the most impactful financial decisions you can make.
Should I pay off debt or invest instead?
If your debt interest rate exceeds your expected investment return, pay off debt first. Credit cards at 19–24% APR almost always beat investing, the stock market averages ~8–10% annually. Low-interest debt (mortgage at 5–6%, student loans at 3–4%) may be worth carrying while investing in tax-advantaged accounts (RRSP, TFSA, 401k) to capture compound growth. The math favours investing when your after-tax debt rate is below your expected after-tax investment return.

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By Bam's Thinkery — Updated

Informational tool. Not a substitute for advice from a qualified financial advisor.