Compare the Payoff Paths

The priority changes; the payment budget does not.

The avalanche route sends extra payment money to the debt with the highest entered interest rate after the minimum payments have been covered. Under this simplified fixed-rate model, targeting the most expensive balance generally reduces total interest. When two rates match, the calculator targets the smaller balance first. This tie-break makes the result consistent rather than relying on the order in which you entered the debts.

The snowball route sends extra money to the smallest remaining balance. Once that balance is cleared, the same payment budget moves to the next smallest debt. This may create an earlier completed account, which some households find helpful for motivation or administration. It can cost more interest when a larger, higher-rate debt waits. Neither result measures how easy a plan will feel in your own circumstances.

For a fair comparison, both simulations use exactly the same starting balances, rates, minimums and total monthly payment. The monthly budget includes minimums; it is not an extra amount added on top. If your total minimums are $180 and you enter $350, the model initially has $170 of extra payment money to direct toward the chosen priority.

Read a payoff month as an estimate.

The calculator adds one month of interest to every outstanding balance, pays the entered fixed minimums and then allocates the remaining budget. If a balance needs less than its minimum to finish, the unused money remains available that month. Once all balances reach zero, the result reports the number of monthly cycles, accumulated interest and total payments.

Actual lenders may use daily balances, different payment allocation rules and interest that accrues between a statement date and a payment date. Credit card minimums commonly change with the balance. Here they remain fixed so the two strategies can be compared consistently. A real account may therefore finish on a different date even if your opening statement matches the example.

If the monthly budget is below the sum of the entered minimums, the tool asks you to revise the inputs instead of quietly skipping an obligation. A simulation that has not reached zero after 1,200 months is labeled unresolved. This can happen when the payment is too small relative to interest. The limit prevents an endlessly running projection; it does not imply that a century-long repayment plan is appropriate.

Update balances rather than chasing a perfect forecast.

When a statement arrives, compare the actual balance and interest with the estimate. Changes do not necessarily mean your plan is wrong; the model may simply use different timing or a fixed minimum that your lender does not use. Re-enter the current balances, check the available monthly payment and note any rate changes.

Do not share account numbers, login details or full statements with this site. Calculator entries remain in the open browser page and disappear when it is reloaded. If you want a record, print the comparison and keep it somewhere appropriate for personal financial information. A dated note of the assumptions is often more useful than a result saved without context.