Avalanche vs Snowball Debt Payoff Calculator
Example: Your debts: 3 debts · Total monthly payment toward all debts: 700 $
| Interest saved with avalanche | $425 |
| Months saved with avalanche | 1 |
| Debts included | 3 |
| Total debt | $22,500 |
| Avalanche: months to debt-free | 39 |
| Avalanche: total interest | $4,571 |
| Snowball: months to debt-free | 40 |
| Snowball: total interest | $4,996 |
Worked example
Say you carry three debts — a $8,000 card at 22.99%, a $2,500 card at 14.99%, and a $12,000 loan at 6.99% — and you can put $700 a month toward all of them. Both strategies pay the minimums on every debt; the difference is where the extra ~$270 goes. The avalanche throws it at the 22.99% card first and clears everything in about 39 months for roughly $4,571 in interest. The snowball attacks the $2,500 card first for a faster early win, finishing in about 40 months for roughly $4,996. Same budget, but the avalanche saves around $425 and a month — while the snowball buys momentum. Add or remove debts above to see the trade-off on your real numbers.
Frequently asked questions
Which method saves more money?
The avalanche (highest rate first) is always mathematically optimal — it minimizes interest paid. The difference varies by situation but is typically $50–$500 for a two-debt scenario and grows as rates and balances diverge.
Which method do most people actually stick with?
Research by the Journal of Marketing Research and others finds that the snowball outperforms in practice because the early payoff of a small account creates a sense of momentum and reduces the cognitive load of managing fewer accounts. The best method is the one you follow through on.
Can I combine both strategies?
Yes — a hybrid is common. Pay minimums everywhere, then throw every extra dollar at the highest-rate debt. But if you have a small balance very close to being paid off, clearing it first costs little in extra interest and buys real psychological relief. Use this calculator to quantify how much a strategic detour costs you.
What if I have more than two debts?
This calculator models two debts for clarity. For larger debt stacks, rank all accounts by rate (avalanche) or by balance (snowball), apply the same logic down the list, and roll each freed-up minimum into the next target — a technique called the debt roll-up.