Finance
Credit card payoff
Estimate repayment time and interest with a fixed monthly payment and no new purchases.
Calculators / Finance / Debt payoff comparison
Debt payoff comparison calculator
Compare debt-avalanche and debt-snowball repayment for two balances.
On this page
Avalanche payoff time21months
Avalanche interest1,029.12
Snowball payoff time21months
Snowball interest1,224.89
Interest saved by avalanche195.76
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How to calculate
Compare debt-avalanche and debt-snowball repayment for two balances.
Apply monthly interest, pay the stated minimums, then direct the remaining fixed monthly budget to either the highest-rate debt (avalanche) or smallest balance (snowball).
Worked example
Debt 1 balance: 5000; Debt 1 annual interest (%): 18; Debt 1 minimum monthly payment: 150; Debt 2 balance: 3000; Debt 2 annual interest (%): 10; Debt 2 minimum monthly payment: 100; Extra monthly payment: 200.
Avalanche payoff time: 21 months; Avalanche interest: 1,029.12 ; Snowball payoff time: 21 months; Snowball interest: 1,224.89 ; Interest saved by avalanche: 195.76 .
Assumptions and limits
Assumes two fixed-rate debts, monthly interest, no fees or new borrowing, and a constant total monthly budget. Real lenders may accrue interest daily or change minimum payments.
Results are rounded for display; calculations use unrounded values. Read our calculation methodology.
Understanding the result
The avalanche method targets the highest annual rate first and normally minimizes interest. The snowball method targets the smallest balance first and may provide an earlier account payoff. Both reuse the same total monthly budget after a debt is cleared.
When this tool is useful
Compare two common repayment strategies before choosing how to direct an extra monthly payment.
Understanding your inputs
| Input | What to enter |
|---|---|
| Debt 1 balance | Enter a number of at least 0 and no more than 1000000000. |
| Debt 1 annual interest (%) | Enter a number of at least 0 and no more than 100. |
| Debt 1 minimum monthly payment | Enter a number of at least 0.01 and no more than 1000000000. |
| Debt 2 balance | Enter a number of at least 0 and no more than 1000000000. |
| Debt 2 annual interest (%) | Enter a number of at least 0 and no more than 100. |
| Debt 2 minimum monthly payment | Enter a number of at least 0.01 and no more than 1000000000. |
| Extra monthly payment | Enter a number of at least 0 and no more than 1000000000. |
Frequently asked questions
Why might my lender totals differ?
Statements can use daily interest, fees, changing minimums and different payment dates. Treat this as a planning comparison, not a lender payoff quote.
What if a payment cannot reduce the balance?
The calculator rejects a budget that does not cover the modeled interest or cannot clear both debts within 100 years.