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//// Financial · Debt

Debt Payoff Calculator

Compare avalanche (highest APR first) vs snowball (lowest balance first). See total interest, months to payoff, payoff order, and balance chart for both methods. Every formula shown.

Where this fits

💸 Budgeting & Cash FlowCash FlowHouseholds

This tool lives inside Cash Flow and is most useful for households.

401(k) Limit 2024$23,000
Roth IRA Limit$7,000
S&P 500 Avg Return~10%/yr

Your debts

$
%
$
$
%
$
$
%
$
Extra monthly payment
$
beyond all minimums

🧊 Avalanche — highest APR first

Time to payoff4 yr 2 mo
Total interest paid$5,155
Total paid$33,155

Payoff order

Credit Card → Car Loan → Student Loan

⛄ Snowball — lowest balance first

Time to payoff4 yr 2 mo
Total interest paid$5,155
Total paid$33,155

Payoff order

Credit Card → Car Loan → Student Loan

Total Debt

$28,000

Monthly Payment

$675

mins + extra

Interest Saved

$0

avalanche vs snowball

Balance over time

$0$7,000$14,000$21,000$28,0001yr2yr3yr4yr
Avalanche
Snowball
1

Total debt

sum of all balances

$5,000 + $15,000 + $8,000

= $28,000

This is the starting principal across every debt account before future interest accrues. Source: standard balance aggregation used in amortization and debt payoff worksheets.

Debt payoff worksheet total balance

2

Blended APR

Σ(balance × APR) ÷ total debt

Σ(balance × APR) ÷ $28,000

= 10.23%

A weighted-average APR shows the overall interest drag on your debt stack before any prioritization strategy is applied. Source: weighted-average cost formula from consumer debt analysis.

Weighted average APR formula

3

Monthly minimum payments

sum of all minimum payments

$100 + $175 + $200

= $475

These are the required payments you must make even before adding any debt-attack money. Source: creditor minimum-payment schedule.

Debt servicing minimum-payment sum

4

Total monthly payment

minimum payments + extra payment

$475 + $200

= $675

This is the total cash you throw at debt each month, with the extra amount redirected to the priority balance after minimums are covered. Source: standard avalanche/snowball payoff framework.

Debt avalanche / debt snowball monthly payment rule

5

Avalanche payoff path

monthly interest = balance × APR ÷ 12; extra payment goes to the highest APR debt

$675/mo with extra directed to Credit Card

= 4 yr 2 mo to payoff

Avalanche is the mathematically optimal payoff order because it minimizes interest paid by attacking the highest-rate balance first. Order: Credit Card → Car Loan → Student Loan.

Debt avalanche method

6

Avalanche total paid

starting debt + simulated interest under avalanche

$28,000 + $5,155

= $33,155

Under avalanche you pay $5,155 of interest and clear the balances in 4 yr 2 mo. Source: month-by-month amortization simulation.

Amortization simulation output

7

Snowball payoff path

monthly interest = balance × APR ÷ 12; extra payment goes to the lowest balance debt

$675/mo with extra directed to Credit Card

= 4 yr 2 mo to payoff

Snowball prioritizes quick wins by clearing the smallest balance first, even if it is not the highest APR debt. Order: Credit Card → Car Loan → Student Loan.

Debt snowball method

8

Interest saved with Avalanche

snowball total interest − avalanche total interest

$5,155 − $5,155

= $0

Both methods produce similar interest costs when rates and balances are already close together.

Comparison of simulated total interest

9

Months saved with Avalanche

snowball months − avalanche months

50 − 50

= 0 months

Both strategies take the same amount of time when your balances and APRs produce nearly identical payoff paths.

Comparison of simulated payoff timelines

Key insight

Avalanche saves money; Snowball saves motivation. The best method is the one you stick with. If your debts have similar APRs, the difference is small — either works.

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#ShowYourWork

Estimates only. Results assume consistent monthly payments at the interest rates entered. Actual payoff may vary with rate changes or missed payments.

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