Debt Payoff Calculator

Compare Snowball vs Avalanche — see which method pays off your debts faster and saves more interest.

Snowball vs Avalanche · Payoff timeline · Total interest savings · Payoff order
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Snowball vs Avalanche: Which Debt Payoff Strategy is Right for You?

Both methods pay off all your debt — the difference is only in which debt gets your extra payment first. In both cases, you pay minimums on all debts and direct any extra monthly amount to one target debt.

Snowball Method

Target the debt with the lowest balance first. When it's paid off, add that freed-up payment to the next smallest balance. The psychological effect is real — crossing debts off the list builds confidence and momentum. Research shows people are more likely to stick with debt payoff when they see early wins.

Avalanche Method

Target the debt with the highest interest rate first. This is mathematically optimal — you minimize total interest paid. The downside: high-rate debts often have large balances too, so it can take a long time before you pay off your first debt.

Which should you choose?

If the interest savings from avalanche are meaningful and you're disciplined, go avalanche. If you've tried paying off debt before and struggled to stay motivated, snowball's early wins may keep you on track. A slightly suboptimal strategy you stick to beats a mathematically perfect one you abandon.

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FAQ

Debt payoff strategy questions

What is the debt snowball method?
Pay minimums on all debts, then direct extra money to the lowest balance first. Once paid off, roll that payment into the next lowest balance. Gives fast psychological wins that build momentum.
What is the debt avalanche method?
Pay minimums on all debts, then direct extra money to the highest interest rate first. Saves the most in total interest paid. Best for people who are motivated by math rather than by checking boxes.
Which method is better — snowball or avalanche?
Avalanche saves more money. Snowball keeps more people on track. A Harvard Business School study found debt payoff is more successful when people see progress (snowball behavior). The best method is the one you'll actually stick to.
How much does the extra payment matter?
Enormously. On a $10,000 credit card at 20% APR with $250 minimum payment, it takes 5+ years to pay off. Add $100 extra/month and it drops to under 3 years with thousands less in interest. Even $50/month extra makes a dramatic difference.