Loan Debt Snowball Calculator
Two famous payoff plans, one honest race. Enter up to six debts and one monthly budget, and this calculator runs both the snowball (smallest balance first) and the avalanche (highest rate first) on the same numbers — months to debt-free and total interest, side by side.
The race — both plans on your numbers
| Plan | Debt-free in | Total interest | Payoff order |
|---|---|---|---|
| Run the race to see both plans. | |||
How it works
Each month, every debt accrues interest on its balance and receives its minimum payment. The rest of your fixed budget attacks a single target debt — the smallest balance in the snowball, the highest APR in the avalanche. When a debt dies, its minimum rolls into the attack money, so the payments snowball (or avalanche) bigger. The avalanche always wins on pure math; the snowball wins early victories, which is why many people stick with it longer.
Formula & worked example
Formula: Each month every debt accrues interest (balance × APR ÷ 12) and receives its minimum; the rest of the fixed budget attacks one target — the smallest balance (snowball) or the highest APR (avalanche). A cleared debt’s minimum rolls into the attack money, so payments grow as the list shrinks.
Worked example: Debts of $500 at 18% (minimum $25), $3,000 at 22% (minimum $60) and $8,000 at 8% (minimum $150), with a $400 monthly budget: both plans finish in 34 months. The snowball pays $1,747.70 of interest; the avalanche pays $1,726.54 — $21.16 less — while the snowball clears the $500 debt first for an early win.
Frequently asked questions
Snowball or avalanche — which is actually better?
On math, the avalanche: it never costs more interest, and often costs less. On the example debts here ($500 at 18%, $3,000 at 22%, $8,000 at 8%, $400 a month), both plans finish in 34 months — the avalanche pays $1,726.54 of interest against the snowball’s $1,747.70, a $21.16 edge. The snowball’s counter-argument is behavioral: clearing the $500 debt in the first few months keeps people going.
What budget should I enter?
Everything you can genuinely put toward these debts each month, minimums included. If the budget is below the sum of the minimums, no plan can work — the calculator will tell you the minimums alone need more.
Why do both plans take the same months but different interest?
The finish line is set mostly by the budget and the biggest debt, which both plans pay last here. The order of the smaller debts changes how much interest accrues along the way, not always how long the road is.
Can I include my mortgage or car loan?
You can, but payoff-plan math is designed for revolving and unsecured debts. Big secured loans have their own tools here — the Mortgage Payoff and Car Loan calculators model extra payments on those properly.
💳 One card at a time?
The Credit Card Payoff Calculator zooms in on a single balance — months to clear it and what the interest really costs.