How the Debt Payoff Calculator works

How Tallivo simulates the snowball and avalanche debt-payoff methods month by month.

The formula

monthly budget = Σ minimum payments + extra payment (constant)

Each month, interest accrues on every debt at its APR ÷ 12.
The minimum payment is paid on every debt that still has a balance.
The entire remaining budget attacks one target debt — the lowest balance (snowball) or the highest APR (avalanche).
When a debt is cleared, its payment rolls over to the next target, accelerating payoff. This repeats until every balance is zero.

Fixed APRs and a constant total monthly budget.
Minimum payments stay fixed (real card minimums usually shrink as the balance falls).
If minimums can't cover interest, the debt won't amortize — the tool flags this case.

Model reviewed 2025. Figures are planning estimates, not a loan offer — this is not financial advice.