Debt Payoff Calculator
List your debts, add what extra you can pay each month, and compare paying the highest rate first (avalanche) with the smallest balance first (snowball).
With a $6,000 card at 21.35%, a $12,000 car loan and a $9,000 line of credit, paying $300 a month above the minimums clears everything in 2 yrs 7 mo with the avalanche method and $3,220 of interest. Minimums alone take 4 yrs 2 mo and cost $6,353.
Figures as of 2026-08-01.Your debts
- Total amount paid
- $30,220
- Total interest paid
- $3,220
- Saved vs minimums only
- $3,134
- 1 yrs 7 mo sooner
- Avalanche saves vs snowball
- $0
Estimate, not advice. Educational estimate only, not financial, mortgage, tax or legal advice. Lenders, insurers and governments set their own rules and can change them; confirm with a licensed professional before you decide.
Debt-free in 2 yrs 7 mo
Show the numbers
| Avalanche | Snowball | |
|---|---|---|
| 1 | $26K | $26K |
| 2 | $25K | $25K |
| 3 | $25K | $25K |
| 4 | $24K | $24K |
| 5 | $23K | $23K |
| 6 | $22K | $22K |
| 7 | $22K | $22K |
| 8 | $21K | $21K |
| 9 | $20K | $20K |
| 10 | $19K | $19K |
| 11 | $18K | $18K |
| 12 | $17K | $17K |
| 13 | $17K | $17K |
| 14 | $16K | $16K |
| 15 | $15K | $15K |
| 16 | $14K | $14K |
| 17 | $13K | $13K |
| 18 | $12K | $12K |
| 19 | $11K | $11K |
| 20 | $10K | $10K |
| 21 | $9K | $9K |
| 22 | $8K | $8K |
| 23 | $7K | $7K |
| 24 | $7K | $7K |
| 25 | $6K | $6K |
| 26 | $5K | $5K |
| 27 | $4K | $4K |
| 28 | $3K | $3K |
| 29 | $2K | $2K |
| 30 | $815 | $815 |
| 31 | $0 | $0 |
Assumptions & sources
Assumptions
- Interest compounds monthly at the stated annual rate.
- Each month every minimum is paid; the extra (plus minimums freed up by paid-off debts) goes to the target debt.
- Example rates: Bank of Canada averages for outstanding card balances, new auto loans and unsecured lines of credit (2026-08).
Sources
- Bank of Canada — Effective rate on outstanding credit card balances (series V122667812) (effective August 1, 2026). Checked .
- Bank of Canada — Effective rate on new auto loans (personal loan plans) (series V122667805) (effective August 1, 2026). Checked .
- Bank of Canada — Effective rate on new unsecured personal lines of credit (series V122667807) (effective August 1, 2026). Checked .
- Financial Consumer Agency of Canada — Paying back your debt. Checked .
Your saved scenarios
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Payment order
- Credit card paid off in month 15
- Line of credit paid off in month 27
- Car loan paid off in month 31
Avalanche vs snowball on your debts
| Measure | Avalanche | Snowball | Minimums only |
|---|---|---|---|
| Total interest | $3,220 | $3,220 | $6,353 |
| Months | 31 | 31 | 50 |
| Credit card | $6,000 at 21.35%min $180 |
|---|---|
| Car loan | $12,000 at 6.59%min $350 |
| Line of credit | $9,000 at 7.78%min $150 |
| Extra each month | $300 |
| Snowball interest | $3,220 |
| Avalanche: debt-free in | 2 yrs 7 mo, $3,220 interest |
Open this example in the calculator →Computed 2026-08-01.
When a debt is paid off, keep paying its minimum toward the next one; that roll-over is what makes both methods work.
What this means for you
- The card at 21.35% is almost always the first target; even a small extra payment there saves more than anywhere else.
- If you can't make the minimums, talk to a non-profit credit counsellor before missing payments.
Go deeper on a MITEY specialist site
Frequently asked questions
Avalanche or snowball: which is better?
The avalanche (highest rate first) always costs the least interest. The snowball (smallest balance first) clears whole debts sooner, which some people find easier to stick with. The calculator shows the dollar difference for your debts so you can decide if the motivation is worth it.
What if I only pay the minimum on my credit card?
Minimum payments are mostly interest at card rates, so the balance falls slowly. The Bank of Canada's average rate on outstanding card balances is shown in the calculator with its date.
Should I consolidate into my mortgage?
Rolling debt into a mortgage lowers the rate but stretches it over decades, which can cost more in total. SecondMortgageCalculator.ca compares it properly.
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