Transparent method
The formula
Worked example
Example inputs
How to interpret the result
Avalanche minimizes total interest paid by targeting the highest rate first, a mathematically optimal approach, while snowball targets the smallest balance first specifically for the psychological win of closing an account quickly. The better method for a specific person is the one they'll actually stick with consistently, not necessarily the one that wins on paper.
Before you rely on it
What to check
Compare the modeled interest difference between the two methods against your own honest read of which approach you're more likely to actually follow through on.
The common error
Where people go wrong with debt snowball vs. avalanche calculator
Assuming the mathematically optimal method is automatically the right choice for everyone. A method that saves more in modeled interest but gets abandoned partway through accomplishes less than a method that costs slightly more but actually gets followed to completion.
Sensitivity evidence
How debt a balance changes the avalanche interest savings vs. snowball
| Debt A balance | Avalanche interest savings vs. snowball | Avalanche payoff time | Snowball payoff time |
|---|---|---|---|
| $6,400 | $531 | 30.0 months | 31.0 months |
| $7,200 | $616 | 32.0 months | 32.0 months |
| $8,000worked example | $701 | 33.0 months | 34.0 months |
| $8,800 | $787 | 34.0 months | 35.0 months |
| $9,600 | $873 | 36.0 months | 37.0 months |
Every input, tested
Which input moves the avalanche interest savings vs. snowball most
| Input | Tested from | To | Avalanche interest savings vs. snowball at each end | Swing |
|---|---|---|---|---|
| Debt A APR | 22.0% | 26.0% | $563 to $853 | $290 (41%) |
| Debt B balance | $4,500 | $5,500 | $601 to $801 | $200 (29%) |
| Debt B APR | 10.0% | 14.0% | $791 to $604 | $187 (27%) |
| Debt A balance | $7,200 | $8,800 | $616 to $787 | $171 (24%) |
| Debt B minimum payment | $135 | $165 | $754 to $652 | $102 (15%) |
| Debt A minimum payment | $180 | $220 | $741 to $663 | $79 (11%) |
| Extra monthly payoff budget | $270 | $330 | $729 to $675 | $54 (7.8%) |
| Debt C balance | $10,800 | $13,200 | $694 to $708 | $13 (1.9%) |
| Debt C APR | 6.0% | 8.0% | $695 to $707 | $12 (1.7%) |
| Debt C minimum payment | $225 | $275 | $705 to $697 | $8.26 (1.2%) |
Two variables at once
Avalanche interest savings vs. snowball by debt a balance and debt a APR
| Debt A balance \ Debt A APR | 20.0% | 24.0% | 28.0% |
|---|---|---|---|
| $6,400 | $333 | $531 | $757 |
| $7,200 | $383 | $616 | $884 |
| $8,000 | $433 | $701 | $1,015 |
| $8,800 | $482 | $787 | $1,151 |
| $9,600 | $531 | $873 | $3,586 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Debt A balance | $8,000 |
| Debt A APR | 24.0% |
| Debt A minimum payment | $200 |
| Debt B balance | $5,000 |
| Debt B APR | 12.0% |
| Debt B minimum payment | $150 |
| Debt C balance | $12,000 |
| Debt C APR | 7.0% |
| Debt C minimum payment | $250 |
| Extra monthly payoff budget | $300 |
| Avalanche interest savings vs. snowball | $701 |
| Avalanche payoff time | 33.0 months |
| Snowball payoff time | 34.0 months |
Where the inputs come from
Enter each debt's current balance, its annual interest rate and its required minimum payment, taken from the latest statements, plus the extra amount you can add each month on top of the minimums. The tool simulates two strategies with the same total monthly payment. Include every debt you plan to attack, and leave out any you will keep paying at the minimum, such as a low-rate mortgage. Update the balances every few months as they change.
Using the avalanche interest savings vs. snowball in a real decision
When the difference is small, choose the method you will stick with: giving up because progress feels slow costs more than the interest saved.
When the result stops applying
The simulation assumes fixed rates, no new charges and the extra payment continuing every month, and it treats minimums as fixed although card minimums fall as balances shrink. Promotional rates that expire, fees and missed payments change the result. If two debts have similar rates, the strategies converge. Balance transfers or consolidation can beat either strategy if they lower the rate.
What to compare it with
See each strategy alone on the debt avalanche and debt snowball calculators, and test a lower rate with the balance transfer and debt consolidation pages. The debt-free date calculator finds the finish date for one debt, and the credit utilization page shows the score effect of paying cards down. An automatic payment on payday keeps the plan running.
People also ask
Frequently asked questions
Which is better, the debt snowball or the debt avalanche?
The avalanche saves more interest, and the snowball builds momentum. The best method is the one you will follow to the end, and the cost difference is often modest.
What do I do when one debt is paid off?
Roll its full payment, the minimum plus the extra, into the next debt on the list, so the payment on the target debt grows like a snowball.
Should I include my mortgage?
Usually not. Mortgages carry lower rates and long terms, so most plans focus on credit cards, personal loans and car loans first.