Debt Payoff Calculator

The avalanche method is mathematically optimal. Always. By definition, paying off the highest-interest debt first minimizes the total interest you pay.

But that's not why most people stick with the avalanche. They don't. Most people who try the avalanche quit before they're debt-free, because progress feels slow when your biggest balance is also the one you're attacking.

The snowball wins on psychology. You pay off the smallest balance first, get the dopamine hit of crossing one debt off your list, then roll that payment into the next smallest. The momentum builds. The total interest is slightly higher but the completion rate is way higher.

Which one should you actually choose?

For most people: the snowball, unless the difference in total interest is large (say, $5,000+) AND you have the discipline to stick with it.

Use this calculator to find your specific numbers. If avalanche saves you only a few hundred dollars but snowball gets you debt-free 2 months faster psychologically, take snowball. The best method is the one you finish.

What this calculator doesn't include

• Balance transfers - Moving a high-interest credit card balance to a 0% promo card can save thousands. Outside the scope here.
• Debt consolidation loans - A lower-rate consolidation loan can be a third option to consider.
• Tax deductibility - Federal student loan interest can be deductible in Canada. Adjust your "real" interest rate downward.
• Pause periods - If your federal student loans are interest-paused (like during COVID), treat them at 0% in the calculator.

This calculator is for educational purposes only. Calculations assume your minimum payments and extra payment are made consistently every month.