How to use it
- Type one debt on each line: name; balance; yearly rate; minimum payment. Use the yearly rate, not the monthly one.
- Enter the extra amount you can pay each month, on top of the minimum payments.
- Choose the order: avalanche pays the highest rate first, snowball pays the smallest balance first.
- Read the time to be debt-free, then compare both methods in the table, or download the order as CSV.
How the monthly budget is spent
The budget is the sum of all minimum payments plus the extra amount, and it is the same every month. Each month every open debt gains its interest, which is its balance times the yearly rate divided by 12, rounded to the cent. Then each open debt receives its minimum payment, and what is left goes to the debts in the order you chose: the first one until it is paid, then the next.
- When a debt is paid off, its minimum payment is no longer taken, so that money rolls over to the next debt in the order.
- A minimum payment cannot exceed what is owed, so the last payment of a debt is smaller.
Avalanche and snowball
The snowball method pays the smallest balance first, which closes debts quickly and shows progress early. The avalanche method pays the highest yearly rate first, which usually costs less interest. The Consumer Financial Protection Bureau (CFPB) describes the two as the snowball method, which starts with the smallest debt, and the highest-interest method, which starts with the debt that charges the most interest.
The calculator orders the debts once, at the start. It does not reorder them as balances change.
What this planner does not include
- Fees, late charges, and interest that is charged on a different basis, such as cash advances.
- New borrowing or purchases on the cards while you pay them off.
- A rate that changes during the plan. Run the planner again from the balances you reached, with the new rates.
Worked example: three debts and 200 extra a month
The minimum payments are 150 + 60 + 250 = 460 a month. With the extra 200 the budget is 660 a month. Card A charges 2% a month (24% a year), the store card 1% and the personal loan 3%.
Avalanche starts with the personal loan at 36%, which is paid off in month 26. Card A follows in month 31. The store card is paid off in month 23 by its minimum payment alone, because the extra money goes to the higher rates first. In total: 31 months, which is 2 years and 7 months, with 6,134.67 of interest.
Snowball starts with the store card, the smallest balance, and finishes in month 33 with 7,447.42 of interest: 1,312.75 more than avalanche in this example.
| Method | Months | Interest paid |
|---|---|---|
| Avalanche | 31 | 6,134.67 |
| Snowball | 33 | 7,447.42 |
Frequently asked questions
Which method pays less interest?
Avalanche usually pays less interest, because the highest rates are paid first. Snowball can feel faster, because small debts close sooner. In the example, avalanche saves 1,312.75 over snowball.
What happens when a minimum payment is smaller than the interest?
The planner still runs: that debt grows until the extra money reaches it. If the whole budget is smaller than the interest, the debts never end, and the planner says so.
Why can a small debt be paid off before the one ahead of it in the order?
A debt with a large minimum payment can be paid off by that minimum alone, before the extra money reaches it. The order table shows the month in which each debt is paid.
Can I write amounts with commas or with dots?
Yes. The planner reads numbers the way your language writes them, so 1,234.50 is read in English and 1.234,50 in Turkish.
Does the planner include new purchases on my cards?
No. Enter the balances as they are today. If you keep using a card, run the planner again with the new balance.
Is my list stored?
No. The plan is calculated in your browser, and nothing you enter is sent to us.
Sources
Figures and text last checked on Tuesday, November 10, 2026.