Debt Snowball vs Avalanche

If you have more than one debt, which one should you pay off first? Two popular strategies are the debt snowball and the debt avalanche, and each has its own strengths. Use the free calculator below to compare them side by side using your own numbers.

Debt Snowball vs. Avalanche Calculator »

How the calculator helps

List your debts with their balances, interest rates, and minimum payments, then enter the total you can pay toward debt each month. The calculator runs both strategies and shows when you would be debt-free, how much interest you would pay, and when each debt is paid off. As each debt is paid off, its payment rolls into the next one. You can see exactly how much time and money one method could save over the other.

Snowball vs. avalanche: what is the difference?

• The avalanche method. You pay the debt with the highest interest rate first. This usually costs the least in total interest and can get you out of debt sooner.
• The snowball method. You pay the smallest balance first. You clear debts quickly, and each win can help you stay motivated, even if it costs a little more in interest.
• Both start the same way. You pay the minimum on every debt and put all your extra money toward one target debt at a time.
• The best method is the one you stick with. If the numbers are close, pick the approach that keeps you going. If avalanche saves a lot, it may be worth the patience.
• Keep rolling payments forward. When a debt is gone, add its old payment to the next debt. This is what makes both methods speed up over time.

Before you rely on the numbers

The calculator assumes fixed interest rates, no new charges or fees, and the same total monthly payment until everything is paid off. Many credit cards have variable rates, so your real results may differ. Check your latest statements for each balance, rate, and minimum payment, and make sure your monthly amount covers all the minimums.

Try it now

Enter your debts and see which method fits your plan:

Debt Snowball vs. Avalanche »

This calculator and article are for general information only and are not financial advice. Talk with a financial professional about your specific situation.