How the debt payoff order calculator works
List each debt with its balance, interest rate, and minimum payment, plus the total you can pay each month. The calculator simulates the avalanche method — attacking the highest rate first — and the snowball method — clearing the smallest balance first.
For each method you get a payoff timeline, total interest paid, and the month-by-month order — so the trade-off between math and motivation is right in front of you.
Worked example: avalanche saves $1,452 over snowball
Owe $12,000 at 22% and $6,000 at 14%, paying $700 a month total. The avalanche method — highest rate first — clears everything in 33 months with $4,752 in interest. The snowball method takes 35 months and costs $6,204 in interest.
Avalanche saves $1,452 and two months here; snowball's edge is psychological — an early win that keeps you going when motivation is the real risk.
What to watch out for
Whichever method you pick, stop adding new debt — fresh balances quietly reset your progress. And keep paying every minimum on time; one late fee or penalty rate can wipe out months of strategy.
If the math feels overwhelming, a nonprofit credit counselor can build the plan with you, usually for free. These figures are estimates for planning, not financial advice.
Frequently asked questions
What is the debt avalanche method?
You pay minimums on everything, then throw all extra cash at the highest-interest debt first. Once it's gone, you roll that payment into the next-highest rate. It minimizes total interest — the mathematically cheapest way out of debt.
What is the debt snowball method?
Same idea, different order: extra payments go to the smallest balance first, regardless of rate. Each paid-off debt is a quick win that builds momentum. It costs more in interest than avalanche, but many people stick with it longer.
Which method is better?
Avalanche always costs less in interest. Snowball often works better in real life because early wins keep motivation high. The honest answer: the best method is the one you'll actually follow for the full payoff — consistency beats optimization.
Should I consolidate instead?
Consolidation can help if you can get a meaningfully lower rate and you stop adding new debt. But it doesn't reduce what you owe — it just reorganizes it. Compare the total interest of consolidation against avalanche before deciding.