When you owe money on several accounts, the order you pay them off changes both the cost and the motivation. The avalanche method targets the highest interest rate first and minimises interest. The snowball method clears the smallest balance first and produces quick wins.
Time to become debt free
3 years 3 months
Paying $300.00 above the minimums on top of $560.00 of minimums clears $23,300 of debt by Nov 2029.
| Debt | Starting balance | APR | Minimum | Interest paid | Month cleared |
|---|---|---|---|---|---|
| Credit card A | $4,800 | 22.5% | $120.00 | $652.59 | 13 |
| Credit card B | $7,500 | 19.99% | $180.00 | $2,537.34 | 30 |
| Car loan | $11,000 | 7.5% | $260.00 | $1,637.44 | 39 |
| Total | $23,300 | $560.00 | $4,827.36 | 39 |
Debts are listed in the order you entered them; the payoff order above is the sequence the simulation actually cleared them in.
| Month | Payment | Interest that month | Total balance remaining |
|---|---|---|---|
| Month 1 | $860.00 | $283.69 | $22,724 |
| 2 | $860.00 | $275.39 | $22,139 |
| 3 | $860.00 | $266.95 | $21,546 |
| 4 | $860.00 | $258.37 | $20,944 |
| 5 | $860.00 | $249.64 | $20,334 |
| 6 | $860.00 | $240.77 | $19,715 |
| 7 | $860.00 | $231.76 | $19,087 |
| 8 | $860.00 | $222.58 | $18,449 |
| 9 | $860.00 | $213.26 | $17,802 |
| 10 | $860.00 | $203.78 | $17,146 |
| 11 | $860.00 | $194.14 | $16,480 |
| 12 | $860.00 | $184.33 | $15,805 |
| Month 13 | $860.00 | $174.36 | $15,119 |
| 14 | $740.00 | $164.24 | $14,543 |
| 15 | $740.00 | $156.80 | $13,960 |
| 16 | $740.00 | $149.26 | $13,369 |
| 17 | $740.00 | $141.61 | $12,771 |
| 18 | $740.00 | $133.84 | $12,165 |
| 19 | $740.00 | $125.95 | $11,551 |
| 20 | $740.00 | $117.95 | $10,929 |
| 21 | $740.00 | $109.83 | $10,298 |
| 22 | $740.00 | $101.59 | $9,660 |
| 23 | $740.00 | $93.22 | $9,013 |
| 24 | $740.00 | $84.73 | $8,358 |
| Month 25 | $740.00 | $76.11 | $7,694 |
| 26 | $740.00 | $67.36 | $7,021 |
| 27 | $740.00 | $58.48 | $6,340 |
| 28 | $740.00 | $49.47 | $5,649 |
| 29 | $740.00 | $40.32 | $4,950 |
| 30 | $569.92 | $31.04 | $4,411 |
| 31 | $560.00 | $27.57 | $3,878 |
| 32 | $560.00 | $24.24 | $3,343 |
| 33 | $560.00 | $20.89 | $2,804 |
| 34 | $560.00 | $17.52 | $2,261 |
| 35 | $560.00 | $14.13 | $1,715 |
| 36 | $560.00 | $10.72 | $1,166 |
| Month 37 | $560.00 | $7.29 | $613 |
| 38 | $560.00 | $3.83 | $57 |
| 39 | $57.44 | $0.36 | $0 |
Showing the first 39 months of a 39-month plan. Every month pays the minimums first, then sends the rest to the focus debt.
Enter your debts, the extra amount you can commit each month, and this calculator runs the plan: the payoff order, the months to debt freedom and the total interest, with the alternative strategy costed alongside it.
Every month, interest is charged on each balance at one twelfth of its APR. Each debt receives its minimum payment, and whatever is left of your budget is thrown at the focus debt. When a debt is cleared, its minimum rolls into the next one — that is the snowball effect.
The simulation stops when every balance is zero, or after 100 years if the minimums cannot cover the interest.
Avalanche (highest APR first) mathematically costs the least. Snowball (smallest balance first) usually costs slightly more but delivers the first cleared account sooner, which many people find easier to sustain.
The results show the interest bill under both strategies on your own balances, so you can see how big the trade-off really is.
The plan only works with a payment above the minimums. Look for money already flowing out: subscriptions, a paid-off car payment, overtime or a balance transfer that temporarily removes interest. Even $100 a month turns a minimum-only plan from decades into years.
Each example below was run through the calculator on this page when the site was built, so the numbers match what you see when you enter the same inputs.
Time to become debt free
3 years 4 months
Paying $300.00 above the minimums on top of $605.00 of minimums clears $24,500 of debt by Dec 2029.
Smallest balance first: the store card disappears quickly and its payment rolls forward.
Time to become debt free
3 years 4 months
Paying $300.00 above the minimums on top of $605.00 of minimums clears $24,500 of debt by Dec 2029.
Highest rate first: the store card and card A absorb the early extra payments.
Time to become debt free
6 years 10 months
Paying $0.00 above the minimums on top of $350.00 of minimums clears $15,000 of debt by Jun 2033.
With no extra payment the plan takes far longer and costs far more interest.
If the numbers are close, choose the one you will stick with. Avalanche saves the most interest; snowball produces the fastest first win. The best plan is the one you keep paying every month until the balances are gone.
Minimums show how much of your budget is already committed. As each debt clears, its minimum is freed up and redirected, which is why clearing a small account accelerates the whole plan.
Capture any employer match first — that is an immediate return that usually beats a credit card rate. Beyond the match, compare the guaranteed interest saved against the expected investment return and your need for cash reserves.
A 0% balance transfer can save real money if you clear the balance before the promotional rate ends and the transfer fee is small. It changes the interest rate, not the discipline: the payoff still has to come out of your monthly budget.
The simulation assumes fixed rates, no new spending on the accounts, no late fees, and payments made every month in full. Real statements vary slightly with statement dates and rounding, so treat the date as a target rather than a promise.
Usually, because credit utilisation falls — and utilisation is the second-largest factor in most scoring models. Closing the accounts can hurt slightly by reducing total available credit, so keep cleared accounts open if they have no annual fee.
Last reviewed 2026-09-13. This page is an estimate tool, not financial, tax or legal advice.Read the full disclaimer.