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Saving & Budgeting

Debt Payoff Calculator

Compare two strategies for clearing multiple debts — avalanche (highest interest rate first) and snowball (smallest balance first) — to see which gets you debt-free faster and cheaper.

Your debts

£

On top of the minimum payments above, each month.

Avalanche method

Saves more

Highest interest rate first

2 yrs 3 mo

to debt-free

Total interest paid£1,356
Total paid£12,356

Snowball method

Smallest balance first

2 yrs 3 mo

to debt-free

Total interest paid£1,356
Total paid£12,356

How we calculate this

Each month, interest accrues on every debt, minimum payments are made across the board, and any leftover budget — your overpayment plus whatever minimums have freed up from debts you've already cleared — goes entirely to the target debt: highest APR first for avalanche, smallest balance first for snowball.

Avalanche almost always saves more in total interest since it attacks the most expensive debt first. Snowball can still be worth it if clearing a small balance quickly matters more to you for motivation than the extra pounds saved.

This tool is for general guidance only and is not financial or tax advice. Always check your own circumstances, ideally with a qualified adviser or accountant, before making decisions.

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