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Debt Payoff Calculator

Compare the snowball and avalanche strategies to find the fastest, cheapest way to clear your debts.

Learn how this calculator works →

Your debts

Debt 1
£
%
£
£

Any amount you can put toward debt beyond the minimum payments each month.

Compare to a consolidation loan (optional)

Enter a rate and term to model paying off all your debts with a single new loan. Leave blank to skip.

%
yrs

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Strategy comparison

Avalanche

Time to payoff2 yrs 1 mo
Total interest£901
Total paid£4,901

Snowball

Time to payoff2 yrs 1 mo
Total interest£901
Total paid£4,901

Proportional

Time to payoff2 yrs 1 mo
Total interest£901
Total paid£4,901

Both strategies are equal

The avalanche and snowball methods produce the same result for your debts.

How these strategies work

Avalanche method

Pay minimums on everything, then throw all extra money at the debt with the highest interest rate. This saves you the most money overall because you eliminate the most expensive debt first.

Snowball method

Pay minimums on everything, then throw all extra money at the debt with the smallest balance. You pay off individual debts faster, giving you psychological wins that help you stay motivated.

Proportional method

Pay minimums on everything, then split your extra money across debts in proportion to their balances. Slower than avalanche, less motivating than snowball, but treats every debt at once.

Avalanche payoff order

  1. 1Credit card

Snowball payoff order

  1. 1Credit card

Important: Not Financial Advice

This calculator is provided for educational and illustrative purposes only. Freedom Isn't Free is not authorised or regulated by the Financial Conduct Authority (FCA) and does not provide financial advice, investment recommendations, or tax guidance.

The projections shown are hypothetical, assume a constant rate of return, and do not account for inflation, taxes, or fees. Actual investment returns vary and you may get back less than you invest. Past performance is not a reliable indicator of future results.

Before making any financial decisions, please consult with an independent financial adviser regulated by the FCA. For help finding an adviser, visit MoneyHelper or Unbiased.

Where links to financial products appear on this page, some may be affiliate links. See our full disclaimer for details.

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