Deciding how to tackle multiple debts can be overwhelming. The Debt Snowball and Debt Avalanche methods are two popular strategies, each with its own benefits. This calculator helps you compare them side-by-side to see which approach saves you more money and which gets you debt-free faster.
Understanding the Strategies:
Debt Snowball Method
With the Debt Snowball method, you pay the minimum payment on all your debts except for the one with the smallest balance. You throw any extra money you have at that smallest debt. Once the smallest debt is paid off, you take the money you were paying on it (its minimum payment plus any extra) and apply it to the next smallest debt. This method provides psychological wins as you quickly pay off smaller debts, building momentum.
Debt Avalanche Method
The Debt Avalanche method focuses on saving the most money on interest. You pay the minimum payment on all your debts except for the one with the highest interest rate. You then apply any extra money you have to that highest-interest debt. Once that debt is paid off, you roll its minimum payment (plus any extra money) into the next debt with the highest interest rate. This method is mathematically superior for minimizing total interest paid.
Your Debt Repayment Plan
This is the additional amount you can afford to pay towards your debts each month, beyond your minimum payments.
Your Debts (up to 5):
Comparison Results
How to Use This Calculator:
Enter Extra Monthly Payment: Input the total additional amount you can consistently pay towards your debts each month. If you can only afford minimums, enter 0.
List Your Debts: For each debt, provide a name (e.g., "Credit Card A", "Car Loan"), its current outstanding balance, its annual interest rate (as a percentage, e.g., 18 for 18%), and its minimum required monthly payment. You can leave unused debt rows blank.
Click "Calculate Repayment": The calculator will process both strategies and display the total time to debt freedom and the total interest paid for each.
Interpreting the Results:
The results will show you:
Total Time to Pay Off: How many months it will take to become debt-free under each method.
Total Interest Paid: The cumulative interest you will pay over the entire repayment period for each method.
Savings: The difference in total interest paid between the Avalanche and Snowball methods, highlighting how much more (or less) you might save.
Generally, the Debt Avalanche method will result in less total interest paid and a shorter repayment time because it targets the most expensive debts first. However, the Debt Snowball method can be more motivating for some individuals due to the quicker wins of paying off smaller debts.
Disclaimer: This calculator provides estimates based on the information you provide and a simplified repayment model. It does not account for changes in interest rates, late fees, new purchases, or other financial complexities. Consult with a financial advisor for personalized debt management strategies.
function calculateDebtStrategies() {
var errorMessage = document.getElementById('errorMessage');
errorMessage.textContent = "; // Clear previous errors
var extraPayment = parseFloat(document.getElementById('extraPayment').value);
if (isNaN(extraPayment) || extraPayment < 0) {
errorMessage.textContent = 'Please enter a valid non-negative extra monthly payment.';
return;
}
var debts = [];
for (var i = 1; i 0 && rate >= 0 && minPayment >= 0) {
debts.push({
name: name,
balance: balance,
rate: rate / 100, // Convert percentage to decimal
minPayment: minPayment
});
} else if ((name || !isNaN(balance) || !isNaN(rate) || !isNaN(minPayment)) && (balance < 0 || rate < 0 || minPayment < 0)) {
errorMessage.textContent = 'Please ensure all entered debt values are valid and non-negative.';
return;
}
}
if (debts.length === 0) {
errorMessage.textContent = 'Please enter at least one valid debt to calculate.';
return;
}
// Check if total minimum payments + extra payment is sufficient to cover interest
var totalMinPayments = debts.reduce(function(sum, debt) { return sum + debt.minPayment; }, 0);
var totalCurrentInterest = debts.reduce(function(sum, debt) { return sum + (debt.balance * (debt.rate / 12)); }, 0);
if (totalMinPayments + extraPayment d.balance > 0)) {
totalMonths++;
var monthlyInterestAccrued = 0;
var newRolloverFromThisMonth = 0; // Minimums from debts paid off *this* month
// 1. Accrue interest for all active debts
for (var i = 0; i 0) {
var interestThisMonth = debt.balance * (debt.rate / 12);
monthlyInterestAccrued += interestThisMonth;
debt.balance += interestThisMonth; // Add interest to balance
}
}
totalInterestPaid += monthlyInterestAccrued;
// 2. Distribute payments
var availableToAttack = extraPaymentAmount + currentRolloverPayment; // Total extra money for this month
for (var i = 0; i 0) {
var paymentMade = 0;
// First, apply minimum payment
var minPaymentApplied = Math.min(debt.minPayment, debt.balance);
debt.balance -= minPaymentApplied;
paymentMade += minPaymentApplied;
// If this debt is the current target (first active debt in sorted list)
if (i === debts.findIndex(d => d.balance > 0)) {
// Apply the 'availableToAttack' pool to this debt
var extraPaymentApplied = Math.min(availableToAttack, debt.balance);
debt.balance -= extraPaymentApplied;
paymentMade += extraPaymentApplied;
availableToAttack -= extraPaymentApplied; // Reduce the pool as it's used
}
if (debt.balance 1200) { // Max 100 years
return { totalMonths: Infinity, totalInterestPaid: Infinity };
}
}
return { totalMonths: totalMonths, totalInterestPaid: totalInterestPaid };
}
function displayResults(snowball, avalanche) {
var resultsDiv = document.getElementById('results');
var snowballResultsDiv = document.getElementById('snowballResults');
var avalancheResultsDiv = document.getElementById('avalancheResults');
var savingsResultsDiv = document.getElementById('savingsResults');
resultsDiv.style.display = 'block';
var formatCurrency = function(amount) {
if (amount === Infinity) return "N/A";
return amount.toLocaleString('en-US', { style: 'currency', currency: 'USD' });
};
var formatMonths = function(months) {
if (months === Infinity) return "Indefinite (payments insufficient)";
var years = Math.floor(months / 12);
var remainingMonths = months % 12;
if (years > 0) {
return years + ' years ' + remainingMonths + ' months';
} else {
return remainingMonths + ' months';
}
};
snowballResultsDiv.innerHTML = '
' +
'Both methods indicate insufficient payments to pay off debts.';
} else if (snowball.totalMonths === Infinity) {
savingsResultsDiv.innerHTML = '
Savings Comparison:
' +
'The Debt Avalanche method can pay off your debts, while the Snowball method cannot with current payments.';
} else if (avalanche.totalMonths === Infinity) {
savingsResultsDiv.innerHTML = '
Savings Comparison:
' +
'The Debt Snowball method can pay off your debts, while the Avalanche method cannot with current payments.';
} else if (interestDifference > 0) {
savingsResultsDiv.innerHTML = '
Savings Comparison:
' +
'The Debt Avalanche method saves you approximately ' + formatCurrency(interestDifference) + ' in interest compared to the Debt Snowball method.';
} else if (interestDifference < 0) {
savingsResultsDiv.innerHTML = '
Savings Comparison:
' +
'The Debt Snowball method saves you approximately ' + formatCurrency(Math.abs(interestDifference)) + ' in interest compared to the Debt Avalanche method. (This is rare, but can happen with specific debt structures or if Avalanche hits the infinite loop safety break first).';
}
else {
savingsResultsDiv.innerHTML = '
Savings Comparison:
' +
'Both methods result in approximately the same total interest paid.';
}
if (snowball.totalMonths === Infinity || avalanche.totalMonths === Infinity) {
savingsResultsDiv.innerHTML += 'One or both methods could not pay off debts with the given payments. Consider increasing your extra monthly payment.';
}
}