💳 Debt Payoff Planner
Avalanche vs snowball payoff comparison.
This compares two popular debt payoff strategies — avalanche and snowball — across multiple debts, showing which saves more in interest and which pays off faster psychologically.
The avalanche method directs extra payments toward the highest-interest-rate debt first, minimizing total interest paid mathematically. The snowball method instead targets the smallest balance first, regardless of rate, to build momentum through quick wins. The calculator simulates both approaches against your actual debt list and repayment budget to show the payoff timeline and total interest for each.
With three debts — a 2,00,000 credit card at 36%, a 5,00,000 personal loan at 14%, and a 10,00,000 car loan at 9% — avalanche clears the credit card first (highest rate) and typically saves several thousand in interest versus snowball, which would target the credit card too in this case since it's also the smallest balance, but the gap widens when the smallest balance isn't the highest-rate debt.
Choosing snowball for its behavioral benefits is legitimate, but it's worth knowing upfront how much more interest it costs in your specific case — this calculator quantifies that trade-off rather than leaving it as a guess.
What it does
Simulates paying off multiple debts with two strategies — avalanche (highest interest first) and snowball (smallest balance first) — plus your extra monthly payment.
When to use it
Use it to choose a payoff order and to see how much an extra monthly payment saves in interest.
Assumptions
- All debts accrue interest monthly; minimums stay fixed.
- The extra payment goes entirely to one target debt each month.
- No new debt is taken on during the payoff.
The math almost always favors avalanche — pay the highest-rate debt first. But if you are the type who gives up, snowball's quick wins may keep you going, and staying consistent beats the 'optimal' plan you abandon. Either way, the extra payment is what accelerates everything.