Two roads out of debt
When you carry several debts, the order you attack them matters almost as much as the total you pay. The snowball method targets the smallest balance first for quick psychological wins; the avalanche method targets the highest interest rate first to save the most money. Both keep every minimum payment current and roll the freed-up payment from each cleared debt into the next, so your effort compounds. This calculator runs both on your exact numbers.
How the simulation works
Budget = Σ minimum payments (fixed each month)
Each month interest accrues on every balance, you pay the minimum on all debts, and any remaining budget goes to the target debt (smallest balance for snowball, highest rate for avalanche). When a debt hits zero, its minimum payment joins the surplus, accelerating the next. We track total months and total interest for each method.
Worked example
Three debts: a $6,000 card at 22% ($150 min), a $12,000 car loan at 6% ($280 min), and a $20,000 student loan at 4% ($220 min). Snowball clears the card first (smallest), then the car, then the student loan. Avalanche also starts with the 22% card — here the highest rate is the smallest balance — so both may align, but on mixed debts avalanche usually finishes with less interest. The calculator shows the exact gap for your list.
Snowball vs avalanche: which to pick?
- Avalanche — best if you are disciplined and want the lowest cost and shortest time.
- Snowball — best if you need momentum; clearing small debts keeps you going.
- Either beats minimums only — doing nothing extra lets interest run for years.
5 tips to pay off faster
- Keep the budget fixed. As debts clear, send the whole old payment at the next one — do not shrink it.
- Add any windfall. Tax refunds and bonuses go straight to the target debt.
- Stop new charges. Freeze cards while paying them off so balances do not rebound.
- Consider a lower rate. A balance transfer or refinance reduces the avalanche's math further.
- Celebrate milestones. Snowball's wins are real progress; acknowledge each cleared debt.
Related calculators
Build your safety net first with the Emergency Fund Calculator, plan the monthly split with the Budget Calculator (50/30/20), and see loan interest with the Amortization Schedule Calculator. Browse all Finance tools.