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Both roll freed minimums forward
Debt Payoff

Debt Snowball vs Avalanche Calculator

Add every debt you have, set what you can pay above the minimums, and see both strategies run side by side — including how much the mathematically optimal one actually saves.

Your Debts

Balance, rate and the minimum your lender requires

Extra Monthly Payment

Everything above the minimums. This is the only lever that matters.

$

Total Debt

$43,700

$745 of minimums + $300 extra

Avalanche Saves

$0

same finish date

Side by Side

Same debts, same budget, different target order

MethodDebt-free inInterest paidAttack first
avalanche4y 0m$5,933Store card
snowball4y 0m$5,933Store card

Which should you use?

The two methods are within 0% of each other here. Pick whichever you will actually stick to; snowball clears your first debt sooner, which some people find decisive.

Payoff Order

Pay every minimum, then send everything spare to the top of this list

avalanche

  1. 1Store card
  2. 2Credit card
  3. 3Car loan
  4. 4Student loan

snowball

  1. 1Store card
  2. 2Credit card
  3. 3Car loan
  4. 4Student loan

Assumptions

  • Assumes no new borrowing on any of these accounts, fixed rates, and that every freed-up minimum is redirected rather than absorbed into spending.
  • A balance transfer or consolidation loan at a lower rate can beat both methods outright. Check the fee and the rate after any promotional period before assuming it does.
Debt7 min readSanguine Straphanger

Snowball or Avalanche: The Gap Is Usually Smaller Than the Argument

One method is mathematically optimal. The other is the one more people finish. Here is how to tell which matters for you.

Both methods do the same thing

Pay the minimum on every debt. Take whatever is spare and throw all of it at one target. When that target clears, its minimum joins the pot and rolls into the next one — which is why both approaches accelerate, and why the last debt clears much faster than the first.

The only difference is which debt gets the spare money. Avalanche picks the highest interest rate. Snowball picks the smallest balance.

Avalanche always wins on arithmetic

Interest accrues on rate, not on size. Directing money at the highest rate always minimises total interest — this is not a matter of opinion, and avalanche can never cost more than snowball.

The honest question is how much more. Often the gap is a few percent of total interest and a month or two, because the highest-rate debt is frequently also small. Sometimes it is thousands. The calculator above tells you which case you are in rather than assuming.

When snowball is the better choice

Debt payoff fails from abandonment far more often than from choosing the wrong order. If clearing a small balance in two months is what keeps someone going, and the alternative is eleven months of grinding at a large balance with nothing visibly finished, snowball wins on the only metric that ends up mattering: completion.

The rule of thumb: if the calculator shows the gap is marginal, take the method you will stick to. If it shows a large gap, that is real money and worth some discipline.

The case where neither works

If a minimum payment is smaller than that debt's monthly interest, the balance grows no matter which method you pick, and it keeps growing until the extra payment finally reaches it. The calculator flags this explicitly because it changes the problem: the priority is finding more money or a lower rate, not optimising the order.

A balance transfer, consolidation loan or a negotiated rate reduction can beat both methods outright. Check the fee and the post-promotional rate before assuming it does.

Frequently Asked Questions & Quantitative Reference

A small buffer first — enough to absorb a car repair without reaching for the card you just cleared — then attack the debt. Paying off a 23% card is a guaranteed 23% return, which beats any savings account, but not if the absence of a buffer means you re-borrow at the same rate the next time something breaks.
Disclaimer

Educational tool only. This is not personalised financial, investment, tax or legal advice, and the author is not a licensed adviser. Figures are estimates based on the assumptions you enter. Consult a qualified professional before acting.