How it works
Each month the planner adds interest to every balance, pays each debt's minimum, then puts everything left over toward one target debt. When a debt is paid off, its minimum payment rolls into the next target, so your total monthly payment stays the same while payments snowball toward the next debt.
- Avalanche targets the highest interest rate first. It always costs the least interest.
- Snowball targets the smallest balance first. You pay a little more interest, but you clear whole debts sooner, which keeps many people going.
Prefer a spreadsheet? Download our free debt snowball spreadsheet for Excel and Google Sheets, with the same month-by-month plan for up to 6 debts.
Worked example
The four sample debts total $21,500, with $625 a month in minimums. Paying $200 a month on top:
Avalanche clears everything in 2 years 8 months and costs $4,494 in interest. Snowball takes 2 years 9 months and costs $5,096.
Paying only the minimums, with nothing rolling over, takes 5 years 9 months and costs $9,681.
Things to know
- Minimums change. Card minimums usually fall as the balance falls. This planner keeps them fixed, which is how you should pay anyway.
- Stop adding new debt. The plan only works if balances aren't growing from new charges.
- Lower rates help most. A balance transfer or consolidation loan at a lower APR can cut the total, but watch transfer fees and promotional periods.
- Interest is estimated monthly as APR ÷ 12. Your lender may calculate daily, so real figures differ slightly.
Questions people ask
Is avalanche or snowball better?
Avalanche is cheaper in pure math. Snowball is easier to stick with because you see debts disappear. The best method is the one you keep up; this planner shows you exactly what the difference costs.
What if my minimum payment doesn't cover the interest?
Then the balance grows and the debt never clears. The planner warns you when that happens. Paying more than the interest each month is the first goal.
Should I pay off debt or save first?
Many people keep a small emergency fund first so a surprise bill doesn't go on a card, then attack high-interest debt. See our emergency fund calculator.
Sources
- Consumer Financial Protection Bureau: how to reduce your debt (snowball and highest-rate methods)
- Federal Reserve: consumer credit (G.19), credit card interest rates
Reviewed September 24, 2026 by The Dollars World team. How we build and check our calculators · Our data and formulas. This is general information, not financial advice.