Debt snowball vs. debt avalanche calculator

Last updated: September 2026 · Verified by Hugo Cardozo.

How the two methods work

Both methods pay the minimum on every debt, then throw every extra dollar at one debt at a time until it's gone — then roll that entire payment into the next target. The only difference is which debt goes first. The snowball method targets the smallest balance first, regardless of interest rate, to rack up quick wins. The avalanche method targets the highest interest rate first, which minimizes total interest paid.

Which one actually saves more money

The avalanche method is mathematically optimal — it will always result in equal or lower total interest than the snowball method, because it eliminates the most expensive debt first. The snowball method can cost more in interest, sometimes noticeably more when a small balance has a low rate and a large balance has a high rate.

So why does anyone use the snowball method?

Because paying off debt is also a behavioral problem, not just a math problem. Clearing a small balance in month two gives a visible win that keeps people motivated to keep going, and that motivation can matter more than a theoretically optimal outcome — a plan you actually stick to beats a slightly cheaper plan you abandon.

How this calculator simulates it

Each month, minimum payments are applied to every debt. The extra amount is applied entirely to the current top-priority debt (smallest balance for snowball, highest APR for avalanche). Once that debt hits zero, its entire payment — minimum plus whatever extra was going to it — rolls onto the next debt in line. This "waterfall" effect is what makes both methods speed up over time.

Frequently asked questions