Method
The calculator simulates two payoff orders month by month. Interest is added using APR divided by 12, minimum payments are applied to every active debt and the extra payment is assigned according to the selected method.
Example
If Debt A has a $5,000 balance at 24% APR and Debt B has a $3,000 balance at 12% APR, avalanche targets Debt A first because it is more expensive. Snowball targets Debt B first because it is smaller.
Common mistakes
Keep paying every minimum payment. The strategy applies only to the extra payment after minimums are covered; skipping minimums can create fees and credit damage.
How to interpret the result
The avalanche method often minimizes interest when APRs differ. The snowball method can clear a smaller balance earlier, which some people find easier to sustain. The useful answer depends on both cost and behavior.
Limitations
The estimate assumes fixed APRs, fixed minimum payments and no new charges. Real credit-card minimums, late fees, hardship programs and variable APRs can change the payoff order and total interest.
References
- Consumer Financial Protection Bureau: debt collection and repayment resources, accessed 2026-05-16.
Last reviewed: 2026-05-16