Debt Payoff Calculator

Snowball vs. avalanche

Both strategies pay the minimum on every debt, then put all remaining extra money toward one target debt at a time. Snowball targets the smallest balance first, regardless of interest rate — the appeal is quick wins that build momentum, since you eliminate whole debts faster. Avalanche targets the highest interest rate first, regardless of balance — this minimizes total interest paid, since the most expensive debt stops accruing interest soonest. Once a debt in either strategy is paid off, its minimum payment rolls into the extra amount for the next target debt, which is where the "snowball" (or "avalanche") effect comes from — the payoff amount grows as debts disappear.

Which one should I use?

Avalanche will always save equal or more in total interest — it's the mathematically optimal choice. Snowball can still be the better real-world choice if the early wins keep you motivated to stick with the plan; a payoff plan you actually follow beats a theoretically optimal one you abandon. Use the numbers above to see exactly how much the "motivation tax" of snowball costs in your specific case, then decide if it's worth it.

Frequently asked questions

Does avalanche always beat snowball?

In terms of total interest paid, yes — or they tie if the highest-rate debt also happens to be the smallest balance. Avalanche never pays more total interest than snowball for the same debts and payment amount, though the difference can be small or large depending on the specific balances and rates involved.

Why would anyone choose snowball if it costs more?

Behavioral research on debt payoff (popularized by financial personality Dave Ramsey) suggests the quick psychological wins from eliminating whole debts fast help people stay motivated and stick with a payoff plan, which matters more in practice than a theoretical interest-savings difference some people never actually realize because they give up on a slower-feeling plan.

What happens to a paid-off debt's minimum payment?

It gets added to the extra amount going toward the next target debt, on top of the extra payment you entered. This is the actual mechanism behind the "snowball" name — the payoff amount builds up as each debt is eliminated, so later debts get paid off faster than earlier ones did.

Does this account for balance transfers or refinancing?

No — this compares snowball and avalanche given your debts and rates as they are today. Moving a balance to a lower-rate card or consolidating debts is a separate decision this calculator doesn't model; if you do that, re-run the numbers with the new balances and rates.