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Debt Snowball vs Avalanche Calculator

Compare two debt payoff strategies side by side — see which method saves more money and gets you debt-free faster

Your Debts

$ beyond minimum payments

About This Tool

When you have multiple debts, there are two popular strategies to pay them off: the Debt Snowball and the Debt Avalanche. Both work, but they have different strengths — and choosing the right one can save you thousands of dollars or keep you motivated longer. The **Snowball method** pays off the smallest balance first, regardless of interest rate. You get quick wins that build momentum. The **Avalanche method** targets the highest interest rate first, minimizing total interest paid. Mathematically optimal, but the first payoff might take longer. This calculator shows both strategies side by side. Enter your debts, see exactly how much each method costs, when each debt gets paid off, and watch the payoff timeline unfold. The best method is the one you'll actually stick with.

How to Use

1. Add your debts using the "Add Debt" button (2-10 debts) 2. For each debt, enter: name, current balance, interest rate (APR), and minimum payment 3. Enter how much extra you can pay each month beyond minimums 4. Compare the results: total paid, interest, and months to debt-free 5. View the timeline to see when each debt closes under each method 6. Check the chart to visualize your debt decreasing over time

Formula

Both methods: Pay minimums on all debts, apply extra payment to target debt. Snowball order: Sort by balance (lowest first) Avalanche order: Sort by interest rate (highest first) Monthly interest = Balance × (Annual Rate / 12) Payment applied to principal = Payment - Monthly interest When a debt is paid off, its payment rolls to the next target debt.

Frequently Asked Questions

What is the debt snowball method?
The debt snowball method pays off debts from smallest balance to largest, regardless of interest rate. You pay minimums on everything except the smallest debt, which gets all your extra money. When it's paid off, you roll that payment to the next smallest. The psychological wins from quick payoffs keep you motivated.
What is the debt avalanche method?
The debt avalanche method pays off debts from highest interest rate to lowest. You pay minimums on everything except the highest-rate debt, which gets all your extra money. This method minimizes total interest paid and is mathematically optimal, but the first payoff might take longer if your highest-rate debt is also large.
Which method is better — snowball or avalanche?
Avalanche saves more money mathematically. Snowball provides faster early wins. Studies show that people using snowball are more likely to become debt-free because the quick wins maintain motivation. If you're disciplined and motivated by saving money, use avalanche. If you need psychological wins to stay on track, use snowball.
How much can I save with the avalanche method?
It depends on your debt mix. If you have a small high-interest debt and a large low-interest debt, avalanche and snowball might be similar. If you have a large high-interest debt, avalanche can save thousands. This calculator shows the exact difference for your situation.
What is the 'extra payment' amount?
The extra payment is money you pay beyond the minimum payments on all your debts. For example, if your total minimums are $500/month and you can afford $700/month, your extra payment is $200. This extra amount goes entirely to your target debt (smallest for snowball, highest rate for avalanche).
What happens when a debt is paid off?
When you pay off a debt, you 'roll' its payment to the next target debt. If you were paying $150/month on a debt that's now gone, that $150 gets added to your payment on the next debt. This creates a snowball effect where your payments grow larger as you eliminate debts.
Should I include my mortgage in this calculator?
You can, but most people focus on consumer debt first (credit cards, car loans, personal loans, student loans). Mortgages are typically low-interest, long-term debt. If you include it, it will likely be last in the avalanche order and might skew the timeline significantly.

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