The Finance Algorithm

Debt Payoff Optimizer

Find the fastest and cheapest strategy to pay off multiple debts - snowball, avalanche, or consolidation

Updated October 2026Built and checked by MaverickHow it's calculatedReport an error

Your numbers

Updates as you type
$
$5k

Balance of your first debt (e.g. credit card)

%
20%

Interest rate on first debt

$

The minimum the lender requires each month

$
$8k

Balance of your second debt

%
9%

Interest rate on second debt

$
$
$2k

Balance of your third debt: set 0 to skip

%
25%

Interest rate on third debt

$
$
$800

Total amount you can put toward all debts each month

The button asks our AI to explain these figures in words.

Debt payoff: snowball vs avalanche

Less interest

Tied

same interest either way

Interest difference

$0

between the two orders

Snowball time

22 mo

$1,835 interest

Avalanche time

22 mo

$1,835 interest

$15,000 across 3 debts

Monthly budget: $800, applied to the minimums first, then to the target debt.

$15,000total debt
Debt 1 (20%)33.3%
Debt 2 (9%)53.3%
Debt 3 (25%)13.3%

Snowball vs avalanche cost

Same debts and budget: only the order the extra goes in changes.

$1,835Snowball$1,835Avalanche

How long each order takes

Snowball clears the smallest debt first; the total time depends on how much interest builds up along the way.

22 moSnowball22 moAvalanche

Total debt remaining, avalanche order

The combined balance month by month.

$0$3,596$7,193$10,789$14,385Mo 1Mo 5Mo 9Mo 14Mo 18Mo 22
How this works. Each debt gets the minimum repayment you entered. The rest of the budget goes to the target debt, and when a debt clears, its minimum rolls on to the next. Minimums stay at the amounts you entered; a credit card's minimum is a percentage of the balance, so on your statement it falls as the balance does.

How it works

Juggling several debts? Pay every minimum, then put any extra on one debt at a time. This calculator compares the two common orders - snowball (smallest balance first) and avalanche (highest rate first) - and shows how long each takes and the interest each costs on your budget.

  1. 1Enter each debt's balance and interest rate
  2. 2Add up to 3 debts for comparison
  3. 3Set your total monthly debt repayment budget
  4. 4See which strategy works best for your situation
  5. 5See your payoff timeline

The figures today

As of 7 November 2026, the lowest personal loan rate is 5.80%, from Plenti Personal Loan, while the typical best across 68 institutions is 7.96%.

Personal loan rates

Worked examples

Mixed Debts

Sarah has a $5,000 credit card at 21% (minimum $150), an $8,000 car loan at 9% (minimum $250) and a $2,000 store card at 25% (minimum $60). She can put $800 a month towards them.

Debt 1 balance
$5,000
Debt 1 interest rate
21%
Debt 1 minimum repayment
$150
Debt 2 balance
$8,000
Debt 2 interest rate
9%
Debt 2 minimum repayment
$250
Debt 3 balance (optional)
$2,000
Debt 3 interest rate
25%
Debt 3 minimum repayment
$60
Monthly budget for debt payments
$800

Here the smallest debt also has the highest rate, so snowball and avalanche pay them off in the same order: all clear in 22 months with $1,889 of interest.

Two Credit Cards

Mike has $4,000 at 19% (minimum $120) and $4,500 at 22% (minimum $135), and $600 a month to pay.

Debt 1 balance
$4,000
Debt 1 interest rate
19%
Debt 1 minimum repayment
$120
Debt 2 balance
$4,500
Debt 2 interest rate
22%
Debt 2 minimum repayment
$135
Debt 3 balance (optional)
$0
Debt 3 interest rate
0%
Debt 3 minimum repayment
$0
Monthly budget for debt payments
$600

Both methods clear the cards in 17 months. Avalanche - paying the 22% card first - costs $1,283 of interest against $1,366 for snowball, $83 less.

Questions people ask

Which debt payoff method is best?
Avalanche saves the most money, but Snowball keeps you motivated with quick wins. If you tend to give up on long-term goals, Snowball may work better despite costing slightly more.
Should I consolidate or use snowball/avalanche?
Consolidate if you can get a rate lower than your average rate and you trust yourself not to rack up new debt on cleared cards. Otherwise, stick with snowball/avalanche.
How much extra should I pay each month?
Any extra helps - it goes straight to a debt's balance and cuts the interest from then on. Regular extra payments are easier to keep up than occasional large ones.

The terms, in plain English

Snowball Method
Pay off smallest debt first for quick wins, then roll that payment to the next smallest.
Avalanche Method
Pay off highest interest rate debt first to minimize total interest paid.
Debt Stacking
Taking the payment from a paid-off debt and adding it to the next target debt.

Official sources

Debt Consolidation Calculator

Combine all debts into one loan

Credit Card Payoff Calculator

Specifically tackle credit card debt

Personal Loan Calculator

Calculate consolidation loan payments