Snowball vs avalanche in one sentence each
Debt snowball: pay the minimum on everything and throw every spare dollar at the smallest balance first. Debt avalanche: pay the minimum on everything and throw every spare dollar at the highest interest rate first. In both, when a debt is paid off, its minimum payment "rolls over" to the next target, so the amount attacking your debt keeps growing.
How the calculator compares them
Your monthly budget is fixed at the sum of all minimum payments plus your extra amount. Each month the calculator adds interest to every debt (APR divided by 12), pays the minimums, and sends everything left to the current target. It keeps going until every balance is zero, then reports the payoff month for each debt and the total interest for each strategy.
Which one should you choose?
Mathematically, the avalanche always costs the same or less interest, because the most expensive debt shrinks first. The snowball's advantage is psychological: you close accounts sooner, and those early wins keep many people motivated enough to stick with the plan. Research on consumer debt repayment has found that people who focus on paying off individual accounts are more likely to stay on track.
Look at the numbers above. If the avalanche saves only a small amount, the snowball's quick wins may be worth it. If it saves hundreds or thousands of dollars, for example because your smallest debt has a low rate and a big card has a high one, the avalanche is hard to argue with. A hybrid also works: knock out one or two tiny balances first, then switch to the avalanche.
Make either method work
- Stop adding new debt. Neither plan works if the balances keep growing.
- Keep your total payment the same when a debt disappears. The rollover is what makes these methods fast.
- Keep a small emergency fund so a surprise expense does not go back on a card.
- Find extra money with a budget; even $100 more a month can cut a year off the plan.
Frequently asked questions
Is the debt avalanche or snowball better?
The avalanche saves the most interest. The snowball pays off individual debts sooner, which helps motivation. The best plan is the one you will stick with; this calculator shows the real cost difference for your debts.
Should mortgage debt be included?
Usually not. Most people use these methods for credit cards, personal loans, car loans and student loans, and handle the mortgage separately.
What if two debts have the same balance or rate?
The snowball breaks ties by paying the higher-rate debt first, and the avalanche by paying the smaller balance first.
How accurate is the payoff date?
It assumes fixed APRs, no new charges and payments made monthly. Card interest is calculated daily by issuers, so real results can differ slightly.