AlsernFinance Tools

Debt Payoff Calculator (Snowball vs Avalanche) Free Online

The avalanche method pays the highest-APR debt first and always costs the least interest; the snowball method pays the smallest balance first for faster early wins. Both roll each paid-off minimum into the next debt.

Debts (3)

  • $
    %
    $
  • $
    %
    $
  • $
    %
    $

Strategy

$

Added on top of all minimums and applied to the target debt.

Debt-free date

Feb 2029

2 yr 4 mo with avalanche

Total interest

$1,939

Saved vs minimum

$2,985

Snowball would cost $49 more interest and finish in 2 yr 4 mo.

Balance race

Now5 yr 4 mo$14.9K
Minimum only (5 yr 4 mo)Snowball (2 yr 4 mo)Avalanche (2 yr 4 mo)
Plan comparison
StrategyMonthsTotal interest
Avalanche28$1,939
Snowball28$1,987
Minimum only64$4,924

Payoff order

  1. 1Credit cardFeb 2028
  2. 2Store cardMar 2028
  3. 3Car loanFeb 2029

Your payoff plan

Debts, chosen strategy and extra payment for tracking in Alsern.

Strategy
Avalanche
Debts
3
Monthly payment
$615
Debt-free
Feb 2029
Track this payoff in Alsern

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Key takeaways

What to know

  1. 01Avalanche minimizes total interest; snowball minimizes the number of open debts sooner.
  2. 02Extra monthly payment has a compounding effect because every freed minimum rolls forward.
  3. 03If a minimum payment does not exceed monthly interest, that balance never reaches zero.

Formula

Balance(next) = Balance x (1 + APR / 12) - Payment

Worked example

A $1,000 balance at 12% APR with $100 monthly payments accrues $10 interest in month one (1,000 x 0.01), leaving $910. It is paid off in 11 months with about $59 total interest.

FAQ

Common questions

Is snowball or avalanche better?

Avalanche costs less interest when rates differ. Snowball can cost more but clears individual debts sooner. The calculator shows the exact difference for your debts.

How is monthly interest calculated?

Each month the balance grows by APR / 12. Payments are applied after interest accrues.

What does rolling over a payment mean?

When a debt is paid off, its minimum payment is added to the payment on the next target debt, so the total monthly payment stays the same.

Why does it say a debt will never be paid off?

When the payment is equal to or lower than the interest charged each month, the balance stays flat or grows. Raise the payment to see a real date.

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