Avalanche
Targets the highest rate and usually minimizes interest.
Finance
Debt payoff plan
Compare strategies and turn your monthly budget into a concrete debt-free plan.
Create your plan
How much can you allocate each month?
Enter at least one debt. With two or more, you can compare strategies.
Your debts
Strategy comparison
Snowball and avalanche keep the budget constant. The minimum-only scenario does not reassign freed payments.
Your next payment
Suggested distribution for the first month.
Plan milestones
Estimated dates when each minimum payment is freed.
Monthly detail
Interest, payments and ending balance by debt.
| Month | Debt | Beginning balance | Interest | Minimum | Extra | Total payment | Ending balance |
|---|
Publicidad
How to interpret the plan
The best strategy is one you can maintain while covering essential expenses.
Snowball
Targets the smallest balance to reach early milestones.
Assumptions
Monthly interest on beginning balance and fixed minimum payments.
Frequently asked questions
Which is better, snowball or avalanche?
Avalanche usually saves more interest by prioritizing the highest rate. Snowball prioritizes the smallest balance and can provide a quicker first win.
How is a paid-off debt's payment reused?
The plan keeps the same monthly budget. When a debt is paid off, its former payment is directed to the next debt.
What if I can only make minimum payments?
The calculator shows a reference scenario with minimum payments that are not reassigned. Some debts may take many years or fail to decrease when the minimum does not cover interest.
Does the calculator include fees or late charges?
No. The estimate uses balance, annual rate and a fixed minimum payment. It excludes fees, insurance, late charges, new purchases and future rate changes.
Why can it differ from my statement?
Lenders may calculate interest using average daily balance, statement dates and variable minimum payments. This tool uses a simplified monthly simulation.