List your debts, add whatever extra you can pay each month, and see how fast
each payoff method gets you to zero — and what the interest costs
either way.
DebtBalanceAPR %Min / mo
3 yr 9 mo to debt-free
Total interest
$5,395
vs. minimum payments only
5 yr 9 mo, $9,568 interest
Snowball instead
3 yr 9 mo, $5,395 interest
Payoff order & cost per debt
#
Debt
Paid off
Interest
1
Credit card
1 yr 9 mo
$1,269.28
2
Personal loan
3 yr 2 mo
$2,164.71
3
Car loan
3 yr 9 mo
$1,961.09
Every month, each debt gets its minimum payment; the extra plus any freed-up minimums from cleared debts go to the target debt.
How it works
Every month, each debt is charged interest at its APR and then paid its
minimum. Your extra payment, plus the minimums freed up as debts are cleared,
is funnelled to one target — the highest-APR debt (avalanche) or the
smallest balance (snowball). The simulation repeats until every balance is
zero.
Explain it to a kid
Imagine you owe a few friends different amounts of allowance. Paying off the smallest one first feels like a quick win — and then you take the money you were paying them and throw it at the next one, like a snowball rolling downhill and picking up speed as it goes.
Frequently asked questions
What's the difference between the debt snowball and debt avalanche?
Both pay the minimum on every debt and throw all extra money at one target debt. The avalanche targets the highest interest rate first, which minimises total interest. The snowball targets the smallest balance first, which clears individual debts sooner for a motivation boost.
Which method saves more money?
The avalanche always pays the least total interest and is usually a little faster. The gap is often small; if the snowball keeps you on track where the avalanche wouldn't, the snowball can be the better real-world choice.
How does the extra payment work?
Each month every debt gets its minimum payment. Your extra amount, plus the freed-up minimum payments from any debts you've already cleared, all go to the current target debt. That growing payment is the 'snowball' effect.
Does this account for interest correctly?
Yes — interest accrues monthly on each remaining balance at its APR before payments are applied, and the simulation runs month by month until every balance reaches zero.