How the Debt Payoff Calculator Works
Add each balance, annual percentage rate (APR), and minimum payment. The calculator applies estimated monthly interest, pays every active minimum, and sends the shared extra-payment budget to the strategy target. Cleared payments roll forward automatically, so the monthly budget keeps working until all entered debts are repaid.
Snowball Target
Smallest balance first
Designed to create earlier account payoffs and visible progress.
Avalanche Target
Highest APR first
Usually minimizes total interest when the same payments are made.
Snowball vs Avalanche: How to Choose
Avalanche gives mathematical priority to expensive debt. Snowball gives behavioral priority to a balance that can disappear sooner. A small difference in projected cost may make consistency more important; a large APR gap can make avalanche savings more significant. Use the side-by-side comparison as a planning aid, then confirm prepayment rules and current balances with each lender.
- Continue required minimum payments on every account
- Avoid adding new balances while following the plan
- Keep essential emergency savings available
- Check promotional-rate expiry and prepayment charges
- Apply bonuses or refunds earlier when practical
- Review the plan whenever rates or payments change
Why Payment Rollover Matters
The plan starts with the sum of all entered minimums plus your recurring extra amount. When an account is cleared, that account's former payment is not removed from the budget—it is redirected to the next target. Keeping the budget level is what creates the accelerating payoff effect used by both methods.
Educational Estimate, Not Financial Advice
Results assume fixed APRs, monthly interest of APR divided by 12, fixed entered minimums, no new borrowing, and payments made as planned. Actual interest may use daily compounding and can include fees, variable rates, penalties, promotional terms, taxes, or lender-specific allocation rules. Confirm payoff amounts with lenders and seek qualified help if repayments are unaffordable.