Learn · Guides · Last reviewed 2026-10-17
How debt payoff order is compared
How this site compares a highest-rate payoff order with a smallest-balance payoff order.
Site editorial notes. Written to explain how this site’s calculators work. Not a review by a licensed mortgage professional, and not a recommendation to borrow.
Interest is one-twelfth of the rate you enter
Each open balance is charged interest once a month. The charge is the unpaid balance times the annual rate you enter, divided by 12, and rounded half-up to the cent. The minimum payment is then applied, and it cannot exceed the balance plus that month of interest.
The extra amount you enter is applied after every minimum. It also cannot exceed the amount still owed. A balance with a zero rate has no interest charge. A minimum of zero does not reduce the balance unless the extra payment reaches it.
The two orders use the same payments
Avalanche sends the extra payment to the highest rate. Snowball sends it to the smallest balance. When rates or balances tie, the balance listed first is paid first. After a balance reaches zero, its minimum is added to the extra starting the next month.
The page runs both orders on the balances, rates, and minimums you enter. One order can finish sooner. The other can charge less interest. The result reports both. It does not pick a payment plan for you.
What this comparison leaves out
Fees, promotional rates, statement due dates, and a creditor hardship plan are not calculated. The model does not look up a credit report or contact a lender. A creditor can apply a payment on a different day or refuse an amount above the statement balance.
The example on this page uses the calculator default balances, rates, minimums, and extra payment. Those figures illustrate the two orders. They are not a required payment.
Needs review before launch. A creditor can apply a payment on a different day or cap a payment at the statement balance.
Try it in a calculator
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Written to explain how this site’s calculators work. Not a review by a licensed mortgage professional, and not a recommendation to borrow. These notes are not financial, tax, or legal advice.