⚑ An estimate, not financial advice
This tool provides estimates for educational purposes only and is not financial, tax or legal advice. Minimum payments are approximated; your lender's terms may differ. Consult a licensed professional before making decisions.
Debt nameBalanceAPR %
$
Minimums are estimated at 2% of each balance (min $25). Your debts are saved privately in your browser.
❄️ Snowball (smallest balance first)
—
$0Total interest
—Debt-free date
🏔️ Avalanche (highest APR first)
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$0Total interest
—Debt-free date
Snowball vs avalanche — how it works
Snowball orders your debts smallest balance first. You clear small debts quickly, which feels great and keeps you going. Avalanche orders them highest interest rate first, which mathematically minimises total interest and time. Both methods pay the minimum on everything and pour every spare dollar — plus the freed-up minimum from each cleared debt — onto the next target. That snowballing of freed payments is what gets you debt-free far faster than minimums alone.
The simulation here runs month by month:
Each month: accrue interest at APR ÷ 12 on every balance, pay an estimated minimum of max($25, balance × 2%) on each debt, then throw the extra payment plus any freed-up minimums at the target debt — smallest balance (snowball) or highest APR (avalanche) — until everything hits zero.
- Total interest — the sum of all interest accrued until the last debt is cleared. Avalanche almost always wins here.
- Debt-free date — when your final balance reaches zero, based on today's date.
- The extra payment — the single biggest lever. Every extra dollar hits principal directly and compounds.
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Frequently asked questions
What is the difference between the debt snowball and avalanche?
Snowball pays off the smallest balance first for quick, motivating wins. Avalanche pays off the highest interest rate first, which mathematically saves the most money and time. Both pay minimums on everything and throw every freed-up payment at the next debt.
Which debt payoff method is better?
Avalanche saves the most interest because it attacks your highest rate first. Snowball can keep you motivated with early wins. If the difference is small, choose the one you'll actually stick with — consistency beats theory.
How are minimum payments estimated?
We estimate each minimum at 2% of the current balance, with a floor of $25. If you know your real minimums they may differ slightly, but the relative comparison between the two methods still holds.
Does paying extra each month really help?
Hugely. Every extra dollar goes straight to principal, cutting both the time to payoff and the total interest. Even a small fixed extra each month compounds into large savings.
Sources
- Standard amortisation: monthly interest = balance × (APR ÷ 12); minimum payment conventions used by major card issuers (≈2% of balance, $25 floor).
- Snowball and avalanche debt-repayment methodologies as commonly described by consumer finance educators.