Order: Credit card → Personal loan → Car loan
Order: Personal loan → Credit card → Car loan
That is a small gap over 1y 11m — your rates are close enough that the ordering barely matters. Pick whichever method you will actually stick with.
How the math works
Both methods run the same simulation month by month. The only thing that changes is which debt receives the spare money.
1. Accrue interest on every debt: balance += balance × APR / 12 2. Pay every minimum 3. Send (extra + freed-up minimums) to the target debt 4. When a debt clears, its minimum joins the pool Avalanche target = highest APR Snowball target = smallest balance
Step 4 is what makes either method accelerate: the amount attacking the remaining debt grows every time one is cleared, so the last debt is usually paid off far faster than the first.
The gap between the two methods comes down to one thing — how long snowball leaves your highest-rate debt running. Our guide to avalanche vs snowball works through two examples where that gap is €85 and €3,168 respectively.
The Debt Free prediction in the Wealth Path app runs this across every debt you track and updates the date as balances change. If you are weighing repayment against investing instead, see Invest vs Pay Down Debt.
Frequently Asked Questions
What is the debt avalanche method?
You pay the minimum on every debt, then direct all spare money at whichever debt carries the highest interest rate. When it clears, its payment rolls into the next-highest rate. It always costs the least interest overall.
What is the debt snowball method?
Identical to avalanche except for the order: you target the smallest balance first, regardless of interest rate. It costs more in interest, but clears whole debts sooner, which many people find easier to sustain.
How much does the choice actually matter?
It depends on the shape of your debt. When all your rates are similar, the difference over several years can be under €100 — and both methods may even finish in the same month. When one large balance carries a much higher rate than the rest, avalanche can save thousands. This calculator shows which case you are in.
How does the calculator handle minimum payments?
Both methods pay every minimum every month. Once a debt is cleared, its minimum is added to the amount attacking the next debt, along with your extra payment — this rollover is what makes both methods accelerate over time.
Does it account for new borrowing or fees?
No. It assumes you add nothing to the balances and that there are no late fees, annual fees, or early repayment penalties. Interest is compounded monthly at the rate you enter.
Track your real payoff date
Wealth Path tracks every debt you hold and recalculates your debt-free date as balances change — plus 10 more predictions from Coast FIRE to passive income.
Free to download · No credit card required
The information and calculations provided are for informational and educational purposes only and should not be considered financial, investment, or professional advice. Projections are hypothetical, based on assumptions that may not reflect actual market conditions. Past performance does not guarantee future results, and all investments carry risk of loss. Consult a qualified financial professional before making financial decisions.