Debt Snowball vs. Avalanche Calculator

Add all your debts — credit cards, personal loans, student loans, auto loans — with their current balance, interest rate, and minimum payment. Then enter the extra monthly amount you can put toward debt repayment beyond the minimums.

The calculator compares two popular strategies: Snowball (pay off smallest balances first for psychological momentum) and Avalanche (pay off highest interest rates first to minimize total interest). You'll see the payoff timeline, total interest paid, and monthly progress chart for each strategy.

When you have multiple debts, choosing the right repayment strategy can save you thousands of dollars and help you stay motivated throughout the payoff journey.

The Debt Snowball Method

Popularized by Dave Ramsey, the snowball method orders debts from smallest balance to largest, regardless of interest rate. You make minimum payments on everything except the smallest debt, which gets all your extra money. When it's paid off, you "snowball" that payment into the next smallest debt. The psychological benefit of quick wins keeps many people motivated.

The Debt Avalanche Method

The avalanche method orders debts from highest interest rate to lowest. Mathematically, this always minimizes total interest paid. The downside is that if your highest-rate debt also has the largest balance, it can take months before you experience the satisfaction of paying off a debt entirely.

Which Saves More Money?

The avalanche method always saves more in interest — but the difference depends on your specific debts. When rate differences are small (e.g., all debts are between 5-7%), the savings may be modest ($100-$500). When you have a mix of low-rate and high-rate debts (e.g., a 4% car loan and a 24% credit card), the avalanche method can save thousands.

The Hybrid Approach

Some financial planners recommend a hybrid: pay off one small debt quickly for momentum, then switch to the avalanche method for the rest. The best strategy is the one you'll stick with — an imperfect plan you follow beats a perfect plan you abandon.