Enter your debts below. You can add as many as you need by clicking 'Add Debt'.
Your Debt Payoff Results
Understanding Debt Snowball vs. Avalanche
When tackling multiple debts, choosing the right payoff strategy can significantly impact your motivation and the total interest paid. Two popular methods are the Debt Snowball and the Debt Avalanche. This calculator helps you visualize how each strategy would work for your specific financial situation.
The Debt Snowball Method
The Debt Snowball method focuses on psychological wins. Here's how it works:
List all your debts from the smallest balance to the largest balance, regardless of interest rate.
Make minimum payments on all debts except the smallest one.
Put any extra money you can towards the debt with the smallest balance.
Once the smallest debt is paid off, take the money you were paying on it (minimum payment + extra payment) and add it to the minimum payment of the next smallest debt.
Continue this pattern, "snowballing" the payment amount as each debt is eliminated, until all debts are paid off.
Pros: Provides quick wins and can be very motivating as you see debts disappear faster. Great for those who need immediate positive reinforcement.
Cons: You may end up paying more interest over time compared to the Avalanche method, as it doesn't prioritize high-interest debts.
The Debt Avalanche Method
The Debt Avalanche method prioritizes saving money on interest. Here's how it works:
List all your debts from the highest interest rate to the lowest interest rate, regardless of balance.
Make minimum payments on all debts except the one with the highest interest rate.
Put any extra money you can towards the debt with the highest interest rate.
Once the highest-interest debt is paid off, take the money you were paying on it (minimum payment + extra payment) and add it to the minimum payment of the debt with the next highest interest rate.
Continue this pattern, focusing on the highest interest rate at each step, until all debts are paid off.
Pros: Mathematically the most efficient way to pay off debt, as it minimizes the total interest paid over the life of the debts.
Cons: Can take longer to see the first debt paid off, which might be demotivating for some.
How the Calculator Works
This calculator simulates both payoff strategies. You provide a list of your debts, including their name, current balance, and interest rate. You also specify your total available monthly payment towards debt reduction. The calculator then:
Sorts your debts according to the rules of each method (smallest balance first for Snowball, highest interest first for Avalanche).
Calculates the estimated time and total interest paid for each method, assuming you consistently apply your total monthly payment and minimums until debts are cleared.
By comparing the results, you can make an informed decision about which strategy best aligns with your financial goals and personal motivation style.
var debtCounter = 1;
function addDebt() {
debtCounter++;
var debtsContainer = document.getElementById('debts-container');
var newDebtDiv = document.createElement('div');
newDebtDiv.className = 'debt-entry';
newDebtDiv.style.marginBottom = '20px';
newDebtDiv.style.padding = '15px';
newDebtDiv.style.border = '1px dashed #ccc';
newDebtDiv.style.borderRadius = '5px';
newDebtDiv.innerHTML = `
`;
debtsContainer.appendChild(newDebtDiv);
}
function removeDebt(debtDiv) {
if (document.getElementById('debts-container').children.length > 1) {
debtDiv.remove();
} else {
alert("You must have at least one debt listed.");
}
}
function calculateDebtStrategies() {
var debts = [];
var debtEntries = document.querySelectorAll('.debt-entry');
var totalMonthlyPayment = parseFloat(document.getElementById('monthlyPayment').value);
if (isNaN(totalMonthlyPayment) || totalMonthlyPayment <= 0) {
alert("Please enter a valid total monthly payment greater than $0.");
return;
}
debtEntries.forEach(function(entry, index) {
var name = entry.querySelector(`input[id^="debtName"]`).value || `Debt ${index + 1}`;
var balance = parseFloat(entry.querySelector(`input[id^="debtBalance"]`).value);
var interestRate = parseFloat(entry.querySelector(`input[id^="debtInterest"]`).value);
if (isNaN(balance) || balance < 0 || isNaN(interestRate) || interestRate {
var balance = parseFloat(entry.querySelector(`input[id^="debtBalance"]`).value);
var interestRate = parseFloat(entry.querySelector(`input[id^="debtInterest"]`).value);
return isNaN(balance) || balance < 0 || isNaN(interestRate) || interestRate debt.balance > 0.01)) {
snowballMonths++;
var paymentApplied = 0;
var snowballMinPaymentSum = 0;
snowballDebts.forEach(function(debt) {
if (debt.balance > 0.01) {
snowballMinPaymentSum += debt.minPayment;
}
});
var snowballExtra = Math.max(0, snowballCurrentTotalPayment – snowballMinPaymentSum);
for (var i = 0; i 0.01) {
var interestThisMonth = snowballDebts[i].balance * (snowballDebts[i].interestRate / 12);
snowballInterestPaid += interestThisMonth;
var principalPayment = 0;
if (i === 0 && snowballDebts[i].balance 0) {
var remainingExtra = snowballExtra;
for(var j = i + 1; j 0.01) {
var interestNextMonth = snowballDebts[j].balance * (snowballDebts[j].interestRate / 12);
var amountToApply = remainingExtra;
if (amountToApply + snowballDebts[j].minPayment > snowballDebts[j].balance + interestNextMonth) {
amountToApply = snowballDebts[j].balance + interestNextMonth – snowballDebts[j].minPayment;
}
principalPayment = amountToApply;
snowballDebts[j].balance -= (principalPayment + snowballDebts[j].minPayment);
snowballDebts[j].balance = Math.max(0, snowballDebts[j].balance);
remainingExtra -= principalPayment;
paymentApplied += principalPayment;
if (remainingExtra 0.01) {
principalPayment = snowballExtra;
if (i > 0 && snowballDebts[i-1].balance snowballDebts[i].balance + interestThisMonth) {
snowballDebts[i].balance = 0;
snowballExtra -= (totalPaymentForThisDebt – interestThisMonth);
snowballExtra = Math.max(0, snowballExtra);
} else {
snowballDebts[i].balance -= (totalPaymentForThisDebt – interestThisMonth);
snowballDebts[i].balance = Math.max(0, snowballDebts[i].balance);
}
}
if (snowballDebts[i].balance snowballDebts[i].balance + interestThisMonth) {
snowballDebts[i].balance = 0;
snowballExtra = (paymentToApply – (snowballDebts[i].balance + interestThisMonth)); // Carry over any overpayment
} else {
snowballDebts[i].balance -= (paymentToApply – interestThisMonth);
}
} else { // Other debts just get minimum payment
snowballDebts[i].balance -= (snowballDebts[i].minPayment – interestThisMonth);
}
snowballDebts[i].balance = Math.max(0, snowballDebts[i].balance);
}
}
}
// Distribute available payment correctly
var snowballTotalPaymentThisMonth = totalMonthlyPayment;
var snowballCurrentMinPayments = 0;
snowballDebts.forEach(function(debt){
if(debt.balance > 0.01) snowballCurrentMinPayments += debt.minPayment;
});
var snowballAvailableExtra = Math.max(0, snowballTotalPaymentThisMonth – snowballCurrentMinPayments);
var snowballPaidFirstDebt = false;
for(var i = 0; i 0.01) {
var interestThisMonth = snowballDebts[i].balance * (snowballDebts[i].interestRate / 12);
snowballInterestPaid += interestThisMonth;
var paymentOnThisDebt = snowballDebts[i].minPayment;
if (!snowballPaidFirstDebt) { // This is the target debt for snowball
paymentOnThisDebt += snowballAvailableExtra;
if (paymentOnThisDebt >= snowballDebts[i].balance + interestThisMonth) {
snowballDebts[i].balance = 0;
snowballAvailableExtra = 0; // All extra paid
snowballPaidFirstDebt = true;
} else {
snowballDebts[i].balance -= (paymentOnThisDebt – interestThisMonth);
snowballAvailableExtra = 0; // All extra dedicated here
}
} else { // Paying minimum on subsequent debts
snowballDebts[i].balance -= (paymentOnThisDebt – interestThisMonth);
}
snowballDebts[i].balance = Math.max(0, snowballDebts[i].balance);
}
}
}
// Avalanche Calculation
var avalancheDebts = JSON.parse(JSON.stringify(debts)); // Deep copy
avalancheDebts.sort(function(a, b) {
return b.interestRate – a.interestRate; // Sort by interest rate, highest first
});
var avalancheMonths = 0;
var avalancheInterestPaid = 0;
var avalancheCurrentTotalPayment = totalMonthlyPayment;
while (avalancheDebts.some(debt => debt.balance > 0.01)) {
avalancheMonths++;
var avalancheTotalPaymentThisMonth = totalMonthlyPayment;
var avalancheCurrentMinPayments = 0;
avalancheDebts.forEach(function(debt){
if(debt.balance > 0.01) avalancheCurrentMinPayments += debt.minPayment;
});
var avalancheAvailableExtra = Math.max(0, avalancheTotalPaymentThisMonth – avalancheCurrentMinPayments);
var avalanchePaidFirstDebt = false;
for(var i = 0; i 0.01) {
var interestThisMonth = avalancheDebts[i].balance * (avalancheDebts[i].interestRate / 12);
avalancheInterestPaid += interestThisMonth;
var paymentOnThisDebt = avalancheDebts[i].minPayment;
if (!avalanchePaidFirstDebt) { // This is the target debt for avalanche
paymentOnThisDebt += avalancheAvailableExtra;
if (paymentOnThisDebt >= avalancheDebts[i].balance + interestThisMonth) {
avalancheDebts[i].balance = 0;
avalancheAvailableExtra = 0; // All extra paid
avalanchePaidFirstDebt = true;
} else {
avalancheDebts[i].balance -= (paymentOnThisDebt – interestThisMonth);
avalancheAvailableExtra = 0; // All extra dedicated here
}
} else { // Paying minimum on subsequent debts
avalancheDebts[i].balance -= (paymentOnThisDebt – interestThisMonth);
}
avalancheDebts[i].balance = Math.max(0, avalancheDebts[i].balance);
}
}
}
document.getElementById('result-snowball').innerHTML =
'Snowball Method: ' +
'Estimated Payoff Time: ' + snowballMonths + ' months, ' +
'Total Interest Paid: $' + snowballInterestPaid.toFixed(2) + '.';
document.getElementById('result-avalanche').innerHTML =
'Avalanche Method: ' +
'Estimated Payoff Time: ' + avalancheMonths + ' months, ' +
'Total Interest Paid: $' + avalancheInterestPaid.toFixed(2) + '.';
}