TryClearTally
Printed August 5, 2026 · https://trycleartally.com/debt-payoff-calculator
Estimates for educational purposes only — not financial advice. See https://trycleartally.com/disclaimer.
Debt Payoff Calculator
List your debts and a monthly budget to compare the two most popular payoff strategies — snowball and avalanche — side by side: how fast each clears your debt and how much interest each costs.
Reviewed by the ClearTally editorial team · Last updated July 16, 2026 · Methodology & sources
Minimum to cover all payments: $550
Avalanche saves you $445 in interest
Paying highest-APR debts first (avalanche) clears everything costs less in interest. Snowball (smallest balance first) can be easier to stick with.
Avalanche (highest APR first)
- Debt-free in
- 2 yr 8 mo
- Total interest
- $3,107
- Total paid
- $25,107
Payoff order: Credit card → Personal loan → Car loan
Snowball (smallest balance first)
- Debt-free in
- 2 yr 8 mo
- Total interest
- $3,553
- Total paid
- $25,553
Payoff order: Personal loan → Credit card → Car loan
Total balance
$22,000
Interest saved (avalanche)
$445
Debt-free (avalanche)
2 yr 8 mo
Balance over time
Interest accrues monthly on each balance. Estimates assume fixed APRs and a constant monthly budget, and don't include fees or promotional rates. For planning only.
Debt Payoff Plan
Debt-free (avalanche)
2 yr 8 mo
Estimates assume fixed APRs and a constant monthly budget. For planning only, not financial advice.
Calculated using the standard formulas described at https://trycleartally.com/methodology — for educational estimates only, not a quote or financial advice. Verify with your lender or financial institution before making decisions.
Focusing on a single debt instead of the whole pile? The credit card payoff calculator handles one card, and the loan payoff calculator shows how extra payments clear one loan faster.
How it works
Both methods pay the minimumon every debt each month, then throw whatever budget is left at one “focus” debt. When that debt is gone, its payment rolls into the next one — the snowball effect. The only difference is which debt you focus on:
- Avalanche targets the highest interest ratefirst. This always costs the least interest and is usually the fastest — it's the mathematically optimal order.
- Snowball targets the smallest balance first. You clear individual debts sooner, which many people find more motivating even if it costs a little more interest overall.
Example: with a $6,000 card at 22%, a $12,000 car loan at 6.5%, and a $4,000 personal loan at 12% on an $800/month budget, avalanche attacks the 22% card first and finishes having paid about $3,107 in interest. Snowball clears the small $4,000 loan first and pays roughly $3,553 — around $445 more. Both are debt-free in the same 32 months, which is the part people don't expect: here the choice costs you money, not time. That gap is a bit over half of one month's payment, so if clearing a whole debt early is what keeps you going, snowball isn't an expensive habit. Adjust the numbers above to see your own gap — it widens as the spread between your rates does.
FAQ
Avalanche (highest interest rate first) always costs the least interest and is usually fastest, so it's the mathematically optimal order. Snowball (smallest balance first) clears individual debts sooner, which many people find more motivating. When the interest gap between them is small — this calculator shows you exactly how small — the method you'll consistently stick with matters more than the math.
Every extra dollar goes straight to your focus debt's principal, so it compounds: you clear that debt sooner, then its whole payment rolls onto the next debt. Try raising the monthly budget field to see how even a small increase shortens your debt-free date and cuts total interest.
Your budget has to be at least the sum of all the minimum payments — otherwise the debts can't be sustained and would grow. The calculator shows that minimum under the budget field and warns you if you're below it.
Yes. Interest accrues monthly on each debt's remaining balance at its APR before payments are applied, which is how credit cards and most loans work. It assumes fixed APRs and a constant monthly budget, and doesn't model fees, promotional 0% periods, or minimum payments that shrink as balances fall.
Consolidating several high-interest debts into one lower-rate loan can reduce interest and simplify payments, but it depends on the rate and fees you qualify for. Compare the total interest here against a consolidation loan using the personal loan calculator before deciding.