Debt Payoff Calculator: avalanche vs snowball
Every debt entered on its own line, because the order you clear them in is worth thousands and a single blended balance cannot show it.
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The short answer
Both methods pay every minimum, then put each spare dollar onto one target debt. Avalanche targets the highest interest rate and costs the least. Snowball targets the smallest balance and clears your first debt soonest. Both finish. They trade money against momentum, and this tool prices that trade on your actual numbers.
Your debts
$38,500What you can pay
minimums total $900The two methods, side by side
Same debts, same monthly payment. The only thing that changes is which debt receives the money left after the minimums are paid.
| Method | Time to clear everything | First debt gone | Total interest |
|---|---|---|---|
| Avalanche, highest rate first | 3 yr 4 mo | 2 yr 2 mo | $6,977 |
| Snowball, smallest balance first | 3 yr 7 mo | 5 months | $9,820 |
| Avalanche, plus $100 a month | 3 yr | sooner still | $6,032 |
What the comparison is telling you
- Avalanche costs $2,843 less. It sends every spare dollar at the 22.99% card, which is where the money is actually leaking.
- Snowball hands you a win in month 5 instead of month 26. It clears the $1,400 card first. That is more than a feeling: it is a freed up $40 minimum and one less statement to open.
- Finding another $100 a month beats choosing the right method. It removes 4 months and saves $945 on its own, which is a bigger effect than most people expect and a smaller sacrifice than switching strategies.
If the gap between the two methods is small, take snowball and enjoy the momentum. If it is large, as it is here, avalanche is worth the patience. The plan that fails is the mathematically perfect one that gets abandoned in month four.
The example in full
Five debts totalling $38,500, minimums of $900 a month, and $1,150 a month available. These are the figures the calculator opens with.
| Debt | Rate | Minimum | Balance |
|---|---|---|---|
| Credit card 1 | 22.99% | $245 | $9,800 |
| Credit card 2 | 12.99% | $40 | $1,400 |
| Line of credit | 10.5% | $145 | $7,200 |
| Car loan | 6.9% | $390 | $14,500 |
| Student loan | 4.5% | $80 | $5,600 |
| Totals | $900 | $38,500 | |
Note which debt each method attacks. Avalanche goes at credit card 1, the largest balance at the highest rate, so nothing clears for 26 months. Snowball goes at credit card 2 and clears it in 5. Neither is wrong.
How the calculation works
A real month by month simulation
This tool does not use a single formula on a blended balance. It runs your debts through an actual month by month schedule, twice. In each month it charges interest on every balance, pays every minimum, then applies whatever is left to one target debt. When that debt clears, its minimum joins the surplus and the whole payment rolls onto the next one. That rolling is where the speed comes from, and it is why the order matters so much.
How interest is charged
Interest is applied monthly at one twelfth of the annual rate. Real cards compound daily and post monthly, so a real statement will differ slightly from this figure. The difference is small and it does not change which method wins.
Minimum payments
Enter the minimum your statement actually asks for. Most Canadian credit cards calculate it as a percentage of the balance, often around 3 percent, with a floor of about $10, so your real minimum falls as the balance does. This tool holds your minimum steady, which is slightly conservative: your real plan will finish a little sooner than shown.
When nothing clears
If your total monthly payment is less than the sum of the minimums, the tool says so plainly instead of producing a number. If the payment covers the minimums but interest is still outrunning it, the result reads Never. Both of those are worth knowing precisely, and both are a reason to talk to someone rather than to try harder alone.
This calculator quotes no government figure and depends on no tax rule, so nothing on this page expires. The rates and minimums are yours; the arithmetic is standard amortisation.
Questions people ask
What is the difference between avalanche and snowball?
Both pay every minimum, then put each spare dollar onto one target. Avalanche targets the highest interest rate, which costs the least overall. Snowball targets the smallest balance, which clears your first debt soonest. That single choice is the whole difference.
Which method should I choose?
Avalanche is cheaper, always. Snowball gives you a cleared debt sooner, which is why people stay with it. Run your own numbers above: if the interest gap is small, take snowball. If it is large, take avalanche. The worst plan is the correct one you abandon in month four.
Should I pay off debt or build an emergency fund first?
Usually a small starter fund first, then high interest debt, then the rest of the fund. With no buffer at all, the next unexpected expense goes back on the card and undoes months of repayment. That restart is why so many payoff plans fail.
What counts as high interest debt in Canada?
Credit cards typically run around 20% and store cards can be higher. Unsecured lines of credit are usually lower. Anything above roughly 10% is generally worth clearing before investing, because clearing a 20% balance is a guaranteed 20% return and no investment can promise that.
Does paying extra hurt my credit score?
No. Paying more than the minimum lowers your balances and your credit utilisation, which generally helps. Closing a card after clearing it can cut your available credit and shorten your history, so clearing a card and leaving it open is often better than clearing and closing it.
Should I consolidate everything into one loan?
Only if the new rate is genuinely lower and the term does not stretch so far that total interest rises. Run your debts above first, note the total interest, then compare it against the consolidation offer on the same basis. Consolidation also does nothing about whatever created the balances.
Does this calculator save or send my information?
Your figures are stored in your own browser so the tool remembers them next visit. Nothing is transmitted, no account is created, and no email address is asked for. Clearing your browser data clears the plan.
Where to go next
Monthly Budget Calculator
Find the extra $100. It shows what is actually left each month once needs, wants and saving are counted.
Open the tool →Avalanche vs Snowball Worksheet
A spreadsheet version of this page, for anyone who would rather keep their own copy.
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See them all →Read the longer explanation
The calculator gives you the number. These go into the why.
The order is the easy part. Finding the extra payment is the hard part.
A review looks at where the money is going, what the workplace plan already covers, and whether anything you are paying for twice could fund the debt instead. No product pitch, no cost.