What is the difference between the Avalanche and Snowball methods?

Both pay the minimum on every debt and throw all spare money at one target debt. The Avalanche method targets the highest interest rate first, which is mathematically the cheapest and fastest route to debt-free. The Snowball method targets the smallest balance first, which clears individual debts sooner and gives motivating early wins. This calculator runs both on your actual debts so you can see the real trade-off.

Which debt payoff method is better?

Avalanche always costs the same or less in total interest, because it kills your most expensive debt fastest. Snowball can cost slightly more but has strong behavioral evidence behind it: clearing a whole debt early builds momentum and reduces the chance you give up. If the interest difference is small, the motivation of Snowball often wins; if you have one high-rate credit card, Avalanche can save a meaningful amount.

How does the calculation work?

Each month the calculator accrues interest on every balance (APR ÷ 12), pays each debt's minimum, then applies your remaining budget to the priority debt for the chosen strategy. When a debt is cleared, its freed-up minimum payment rolls into the budget, and this rollover is what speeds up payoff over time. It repeats month by month until every balance hits zero.

Why does my budget need to exceed the total minimum payments?

If your monthly budget only covers the minimums (or less), high-interest balances can grow faster than you pay them down and you never become debt-free. Any amount above the combined minimums is what actually reduces what you owe and shortens your timeline, and even a modest extra amount makes a big difference over time.

Loans & Debt

Debt Payoff Calculator

Compare the Avalanche and Snowball methods across all your debts at once. See exactly when you'll be debt-free and how much interest each plan costs.

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Default inflation rate for Other: 3.0% per year, based on long-run global CPI averages data (2026). You can override it in each calculator’s advanced options. See data sources for full citations.

Methodology: Mathematical FormulasData Sources: Inflation & Tax CitationsDisclaimer: Legal Disclosures

How We Work It Out

Each month the simulation runs this loop for every debt until all balances reach zero:

balance += balance × (APR / 12)

pay minimum on every debt

remaining budget → target debt (highest APR or smallest balance)

cleared debt's minimum → rolls into next month's budget

Avalanche orders targets by highest APR; Snowball orders by smallest balance. The rollover of freed-up minimums is what compounds your progress.

Real-World Examples

Avalanche vs Snowball on three debts

With a $6,000 credit card at 22.9%, a $14,000 car loan at 7.5%, and a $22,000 student loan at 5.5% on an $800/month budget, Avalanche (credit card first) typically clears all three a little sooner and saves several hundred to a few thousand dollars in interest versus Snowball, while Snowball clears the credit card just as fast since it is also the smallest balance.

Frequently Asked Questions (FAQ)

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Loans & Debt

Debt Payoff Calculator

Compare the Avalanche and Snowball methods across all your debts at once. See exactly when you'll be debt-free and how much interest each plan costs.

Your Debts

Name	Balance ($)	APR (%)	Min / mo ($)

Total Monthly Payment Budget ($)

Minimum payments add up to $710/mo · $42K owed across 3 debts

Avalanche

Lowest cost

Highest interest rate first. Cheapest overall.

Debt-free in

5 yrs 4 mo

Total interest

$9.04K

Snowball

Smallest balance first. Quick wins to stay motivated.