We use cookies to improve your experience on our site. By using our site, you consent to the use of cookies. Rejecting cookies will prevent non-essential cookies from loading.
Wealth Strategies · Debt Payoff Planner
Smallest balance first or highest rate first?
See your estimated debt-free date both ways. Compare the snowball and avalanche methods side by side, using your own balances, rates and payments.
When you have more than one debt, every extra dollar has to go somewhere. The snowball method directs the remaining budget to debts in order of smallest starting balance first. The avalanche method directs it to the highest interest rate first, which usually lowers the total interest paid. Both keep paying every minimum, and both roll a paid-off debt's payment into the next one. This planner runs your numbers through each method so you can compare the estimated payoff date, the interest and the timing of the first payoff.
1
Enter your debtsBalance, interest rate (APR) and minimum payment for each one.
2
Choose an extra amountWhat you could pay each month on top of your minimums.
3
See your payoff date both waysDebt-free date, total interest and payoff order for each method.
Your debts
Start from a sample and change the numbers to match your statements.
DebtBalanceAPRMin. payment
Total owed $0Minimums $0/moMonthly budget $0/mo
APR is the yearly interest rate on your statement. The planner adds one twelfth of it as interest each month.
On top of your minimums. Your total monthly budget (minimums + extra) stays the same; when a debt is paid off, its minimum rolls into the next one. Dates count from next month's payment.
Optional: learn about NeoPenn Life Strategies LLC and its services, including income protection, insurance strategies and retirement income concepts, with an emphasis on education and transparency. This planner does not determine whether any service is appropriate for you. For current licensing details, visit srepen.com/bio.
The planner estimates how long it may take to pay off several debts, and how much interest you may pay along the way, under two common payoff orders. Both methods use the same monthly budget: the sum of the starting minimum payments for debts with a balance above $0, plus your extra amount. Rows with a $0 balance add nothing to the budget. The only difference is which debt gets the money left over after minimums.
What happens each month
Each month, every unpaid balance first grows by one month's share of its APR (the APR ÷ 12). Then the minimum payment is made on every debt, or the full balance if it's smaller. Whatever is left of the monthly budget goes to the target debt. If that pays it off, the remainder moves to the next debt on the list in the same month. A paid-off debt's minimum remains in the fixed monthly budget, increasing the amount available for the remaining target debts.
Snowball: the target is the debt with the smallest starting balance (ties go to the higher rate).
Avalanche: the target is the debt with the highest APR (ties go to the smaller balance).
A worked example
The Typical household sample has four debts: a store card ($800 at 15%, $30 minimum), a credit card ($6,500 at 24%, $165 minimum), a car loan ($9,500 at 6.5%, $260 minimum) and a personal loan ($3,000 at 11%, $95 minimum). The minimums add up to $550, and with a $200 extra payment the monthly budget is $750.
In month 1 the store card adds $10.00 of interest ($800 × 15% ÷ 12) and the credit card adds $130.00 ($6,500 × 24% ÷ 12). After minimums, snowball sends the $200 extra to the store card, while avalanche sends it to the credit card.
Snowball pays off the store card in month 4, the personal loan in month 13, the credit card in month 27 and the car loan in month 32. Estimated total interest: $3,788.
Avalanche pays off the credit card in month 23 (the store card, paid down by its minimum, finishes the same month), the personal loan in month 26 and the car loan in month 31. Estimated total interest: $3,274.
Avalanche saves about $514 and finishes 1 month sooner. Snowball reaches its first payoff 19 months earlier.
With no extra payment (minimums plus rollover only), either method would take about 49 months.
The debt-free date is the month of the final payment, counting the first payment as next month.
What this doesn't include
The planner assumes fixed rates, no new charges, no fees and on-time payments at the end of each month. Lenders often calculate interest daily, minimum payments can change as balances fall, and promotional rates can end, so your actual dates and interest may differ. Use the results to compare the two orders, not as a payoff quote. If you'd like to learn about NeoPenn's services, you can request an optional introductory appointment.
Frequently asked questions
How do the two methods differ?
When your debts have different interest rates, paying the highest rate first (the avalanche method) usually costs less interest overall. Paying the smallest balance first (the snowball method) usually reaches the first payoff sooner. With the Typical household sample, highest rate first saves an estimated $514 in interest and finishes 1 month sooner, while smallest balance first pays off its first debt in month 4 instead of month 23. This planner compares modeled interest, payoff time and first-payoff timing; it does not determine which method is appropriate for you.
Why does my monthly payment stay the same after a debt is paid off?
Both methods assume you keep paying the same total each month: the starting minimums for debts with a balance above $0, plus your extra amount. When one debt is paid off, its minimum payment isn't spent elsewhere; it rolls into the next debt on the list. That rollover is what speeds up each payoff. If you lower your total payment once a debt is gone, your actual timeline would be longer than the planner shows.
What if I can only afford the minimum payments?
Set the extra payment to $0 to model the starting minimum payments with rollover. This assumes you continue paying the same combined amount after individual debts are paid off; it does not model changing statement minimums or assess affordability. In the Typical household sample, that would take an estimated 49 months either way, compared with 32 or 31 months with an extra $200 a month. If a minimum is lower than that debt's monthly interest, the planner flags it.
Does the planner include fees, new charges or rate changes?
No. It assumes each APR stays fixed, no new purchases are added, no fees or penalties apply, and every payment is made on time at the end of the month. Interest is estimated as one twelfth of the APR each month. Many lenders calculate interest daily, and promotional rates can end, so your statements may differ. Treat the dates as estimates and recheck them when a balance or rate changes.
Should I pay down debt or build an emergency fund first?
This planner does not evaluate whether to prioritize debt payments, emergency savings or a combination. It does not assess cash reserves, income stability or other obligations. The separate Emergency Fund Planner illustrates savings scenarios; neither tool recommends an allocation.
Is my information saved or sent anywhere?
No. Everything you type is processed in your browser and is not saved or sent to NeoPenn Life Strategies LLC. If you refresh or close the page, your entries are gone. Anonymous site analytics may record that the planner was used, but never the balances, rates or payments you enter.
Is this financial advice?
No. The planner is an educational tool that turns the numbers you enter into estimates. It is not financial, investment, tax, credit counseling or legal advice, and it doesn't consider your full situation. If you'd like to learn about NeoPenn's services, you can request an optional introductory appointment with NeoPenn. For current licensing details, visit srepen.com/bio.
About the author
Sreeram Penna
Financial Services Professional · Principal Partner, NeoPenn Life Strategies LLC
As a Principal Partner at NeoPenn Life Strategies LLC, Sreeram helps individuals, families and professionals build greater financial clarity, protection and long-term confidence. Drawing on his training in medicine, he brings a structured, analytical and human-centered perspective to financial services. His work focuses on areas such as income protection, financial protection, insurance strategies, retirement income concepts, long-term care planning and legacy planning, with an emphasis on education and transparency so people can understand their options and make informed decisions.
For current licensing details, please visit srepen.com/bio.
Monthly budget = sum of the starting minimum payments for debts with a starting balance above $0 + extra payment. Rows with a $0 starting balance contribute nothing. The budget stays the same every month until all debts are paid.
Each month: (1) every unpaid balance grows by balance × APR ÷ 12; (2) each debt receives its minimum payment, or its full balance if smaller; (3) the rest of the budget goes to the target debt, then the next one if the target is paid off.
Snowball order = smallest starting balance first (ties: higher APR first). Avalanche order = highest APR first (ties: smaller balance first).
Debt-free date = this month + the number of months until every balance reaches $0 (first payment = next month).
Total interest = the sum of all monthly interest added, rounded to whole dollars. The savings shown is the difference between the two rounded totals.
With no extra = the same calculation with the extra payment set to $0.
If the debts would not be paid off within 600 months (50 years), the planner says so instead of showing a date.
Allowed inputs: up to 10 debts; balance $0 to $1,000,000; APR 0% to 40% (up to 2 decimals); minimum payment $0 to $50,000 per month; extra payment $0 to $100,000 per month. Dollar amounts are whole dollars.
