Debt Payoff Planner
Avalanche vs snowball — see exactly which debt to attack first and what each strategy costs you.
Your debts
Payoff order
Combined balance over time
About the Debt Payoff Planner
This tool simulates your debts month by month: interest accrues, minimum payments apply, and every remaining dollar of your extra monthly budget routes to whichever debt is next in priority order — highest interest rate first under avalanche, smallest balance first under snowball. The moment a debt clears, its minimum payment rolls into the pool for the next debt, which is what makes payoff accelerate instead of staying flat.
Neither method is "wrong" — avalanche is the mathematically cheaper choice, but snowball's faster early wins are a real behavioural advantage for a lot of people. This tool runs both so you can see the actual dollar cost of picking motivation over optimality (or vice versa) for your specific debts.
Related calculators
Budget Calculator — the surplus router that sends money here in the first place · Emergency Fund Calculator — build your safety net before accelerating debt payoff · Net Worth Tracker — see the full picture once debts are paid down.
Frequently asked questions
Avalanche or snowball — which debt payoff method is better?
Avalanche (highest interest rate first) mathematically minimizes the total interest you pay — it is the objectively cheaper method. Snowball (smallest balance first) usually costs a bit more in interest but clears individual debts faster, which research (Gal & McShane, 2012) found makes people more likely to actually finish their payoff plan. If you are disciplined, avalanche saves money. If you need quick wins to stay motivated, snowball works too — this tool shows you the interest cost of each so you can decide with real numbers.
What counts as "high-interest" debt I should prioritize?
Common Canadian financial-planning guidance treats anything above roughly 10% APR as high-interest — this includes most credit cards (typically 19.99–24.99%), payday loans, and some personal/store loans. Car loans and lines of credit in the 6–10% range are lower priority; many advisors would route extra money to a TFSA or RRSP instead of accelerating those, since expected investment returns can exceed the loan rate.
Does paying off a debt free up money for the next one?
Yes — that rollover is the entire mechanic behind both strategies. Once a debt hits $0, the money that used to go to its minimum payment gets redirected to your next-priority debt the same month. This is why payoff accelerates over time instead of staying flat: each debt you clear makes the next one faster.
What if my minimum payment barely covers the interest?
If a debt's minimum payment is close to or below what it accrues in interest each month, the balance barely shrinks (or grows) under minimums alone — this tool flags that case. It is the clearest sign that debt needs extra payment routed to it as soon as possible, before it compounds further out of reach.