Debt Payoff Calculator
Compare two popular debt payoff strategies side by side. The snowball method pays off the smallest balance first for psychological wins; the avalanche method pays off the highest-interest debt first to save the most money.
Enter up to three debts
Enter your debts and monthly budget, then press Compare.
Snowball vs avalanche
Debt snowball: pay off the smallest balance first while paying minimums on the rest. When one debt clears, roll its payment into the next. Psychologically motivating because you see quick wins.
Debt avalanche: pay off the highest interest rate first. Mathematically optimal — you pay less total interest and finish sooner, but the first win can take a long time if the top-interest debt has a large balance.
Both work. Choose snowball if you need motivation; avalanche if you want the smallest total bill.
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Frequently asked questions
Avalanche, mathematically. The difference is largest when your debts have very different interest rates — for example a 25% credit card and a 5% car loan. When rates are close, snowball and avalanche produce almost identical results, so snowball's motivational benefit becomes the deciding factor.
Enormously. Paying the minimum on a credit card stretches a 3-year payoff into 20+ years. Even £50 extra per month can save thousands in interest and cut years off the schedule.