How to use this calculator

  1. List each debt. Add a name, the current balance, the annual interest rate and the minimum monthly payment. You’ll find these on your latest statement or in your online banking.
  2. Add an extra payment. Enter any amount you can put toward debt each month on top of your minimums. Even a small extra amount can shorten your timeline.
  3. Compare the results. The calculator runs both methods month by month. For each one, you’ll see your debt-free month and year, the number of months it takes, the total interest paid and the order your debts are paid off.

Each month, the calculator adds interest to every balance, pays the minimum on every debt and sends the rest of your monthly budget to the target debt. When a debt is paid off, its payment rolls into the next debt on the list. The simulation stops at 600 months (50 years).

Debt snowball vs debt avalanche: which is better?

Both strategies use the same total monthly payment. The only difference is which debt gets your extra money first.

Debt avalanche: highest interest rate first

The avalanche method targets the debt with the highest interest rate, such as a credit card, while paying the minimum on everything else. Because your most expensive debt shrinks first, less interest builds up over time. Mathematically, it usually costs the least.

Debt snowball: smallest balance first

The snowball method targets the smallest balance first, no matter the rate. You close accounts sooner, which can feel rewarding and help you stay on track. The trade-off is that you may pay more interest overall.

So which is better? If saving money is your top priority and you can stay disciplined, the avalanche method is usually the winner. If you need quick wins to stay motivated, the snowball method may be the plan you actually stick with. Use the calculator above to see how big the difference is for your own debts. Sometimes it’s only a few dollars.

Tips to pay off debt faster in Canada

  • Build a realistic budget first. Knowing where your money goes helps you find an extra payment you can keep up every month. Try our free budget calculator.
  • Pay more than the minimum. Minimum payments on credit cards are often designed to keep you paying for years. Any amount above the minimum goes straight to the balance.
  • Ask about a lower rate. Call your card issuer or bank and ask whether a lower interest rate is available. Compare any balance transfer or consolidation offer carefully, including fees and the rate after any promotional period ends.
  • Use windfalls wisely. Consider putting part of a tax refund, bonus or GST/HST credit payment toward your target debt.
  • Avoid adding new debt. Paying down a balance while adding new charges keeps you running in place.
  • Get help if you need it. If your debts feel unmanageable, a non-profit credit counselling agency or a Licensed Insolvency Trustee can explain your options.

Frequently asked questions

What is the difference between the debt snowball and debt avalanche methods?

Both methods pay the minimum on every debt and put any extra money toward one target debt. The snowball method targets the smallest balance first, while the avalanche method targets the highest interest rate first. When a debt is paid off, its payment rolls into the next one.

Which method saves more money?

The avalanche method usually costs less in total interest because it attacks your most expensive debt first. The snowball method can cost more, but some people stay more motivated by paying off small balances quickly. This calculator shows the difference for your own debts.

Why does the calculator say a debt would never be paid off?

If a minimum payment is equal to or less than the interest charged each month, the balance never goes down. Paying more than the interest, adding an extra monthly payment, or rolling another debt’s payment into it is the only way to make progress.

Does this calculator work for 0% interest debts?

Yes. Enter 0 as the interest rate for interest-free balances, such as some payment plans or promotional offers. Keep in mind that promotional rates often end, so check when the regular rate starts.

Are my numbers saved or sent anywhere?

No. The calculator runs in your browser and does not store or send the information you enter. Refreshing the page clears your numbers.

How accurate are the results?

The results are estimates. The calculator assumes a fixed interest rate, the same payment every month and interest charged monthly. Real statements can differ because of daily interest, fees, rate changes and changing minimum payments.