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Avalanche vs. snowball

Debt payoff calculator

Compare payoff order, estimated interest, and time to debt freedom across multiple balances.

01

List what you owe

Debt details

Debt 1
₱
%

Use annual effective rate when available.

₱
Debt 2
₱
%

Use annual effective rate when available.

₱
₱
02

Compare payoff methods

Your payoff route

Estimated debt-free time1 yr 8 mo₱10,500 total monthly debt budget
Payoff trendEstimated remaining balance using the avalanche method.
Debt remaining
NowMonth 10Month 20
Total balance₱180,000
Estimated interest₱25,812
Avalanche interest₱25,812
Snowball interest₱25,812
Estimated payoff order
  1. Credit card
  2. Personal loan

Assumes rates and payments remain constant, interest accrues monthly, and cleared minimums roll into the next debt. Confirm effective rates, fees, penalties, and allocation rules with each creditor.

Use the true cost

Ask for the effective interest rate.

The avalanche method targets the highest annual rate first and generally aims to reduce interest. The snowball method targets the smallest balance first and may create earlier psychological wins.

BSP explains that the effective interest rate reflects the true loan cost and that financial institutions should disclose applicable fees and charges.

Open BSP loan guidance ↗