Debt Snowball vs Avalanche Calculator
Compare two popular debt payoff strategies to find the approach that works best for your financial situation. Enter your debts below to see how much interest you could save and how quickly you can become debt-free.
How to Use This Calculator
Step 1: Add all your debts by entering the name, current balance, annual interest rate, and minimum monthly payment for each.
Step 2: Enter any extra amount you can put toward debt payments each month beyond the minimums.
Step 3: Compare the results to see which strategy saves more money and which pays off debt faster.
Understanding the Two Strategies
Debt Snowball Method
The debt snowball method prioritizes paying off your smallest balances first, regardless of interest rate. After paying minimums on all debts, you put extra money toward the debt with the lowest balance. Once that debt is eliminated, you roll that payment into the next smallest debt.
Advantages:
- Quick wins provide psychological motivation
- Simplifies your finances by reducing the number of debts faster
- Easier to track progress with tangible milestones
Disadvantages:
- May result in paying more total interest
- Not mathematically optimal in most cases
Debt Avalanche Method
The debt avalanche method prioritizes paying off debts with the highest interest rates first. After paying minimums on all debts, extra money goes toward the debt charging the most interest. This approach minimizes total interest paid over time.
Advantages:
- Minimizes total interest paid
- Mathematically optimal approach
- Saves money in the long run
Disadvantages:
- May take longer to see debts fully eliminated
- Can feel discouraging if high-interest debts have large balances
Which Strategy Should You Choose?
The avalanche method typically saves more money, but the best strategy depends on your personal situation and psychology:
Choose Snowball if:
- You need motivation from quick wins
- Your debts have similar interest rates
- You've struggled to stick with debt payoff plans before
Choose Avalanche if:
- You're disciplined and motivated by saving money
- You have debts with significantly different interest rates
- You can stay committed without needing early victories
Research from behavioral finance suggests that people who use the snowball method are more likely to successfully eliminate their debt, even though they may pay slightly more in interest. The psychological benefit of early wins can outweigh the mathematical disadvantage.
Want to learn more? Read our comprehensive guide on Debt Payoff Strategies for detailed explanations of these methods, plus additional strategies like debt consolidation, balance transfers, and negotiation tactics.