Debt Avalanche vs Snowball Calculator
Enter up to 3 debts and see which payoff strategy saves you the most money.
Debt 1
Debt 2
Debt 3 (optional)
Avalanche vs Snowball: Which is Right for You?
Both strategies use the same core mechanic: pay minimums on all debts, then direct all extra money at one target debt. The difference is which debt you target first.
Debt Avalanche — The Mathematician's Choice
Target the highest interest rate debt first. This minimises total interest paid and pays off debt in the least total time. If you have a credit card at 20% and a personal loan at 10%, avalanche attacks the credit card first.
Debt Snowball — The Psychologist's Choice
Target the smallest balance first, regardless of interest rate. The quick win of eliminating a debt entirely is motivating. Research by behavioural economists suggests many people are more likely to stay on track with snowball — meaning the "worse" strategy on paper can produce better real-world outcomes.
A worked example
$28,000 across three debts — $8,000 at 20%, $15,000 at 12% and $5,000 at 6% — with $300 a month spare. Avalanche clears them in 45 months for $6,072 of interest; snowball takes 48 months. The gap is $1,462 — real, but smaller than the internet suggests.
The Verdict
If the interest saving difference is large (thousands of dollars), avalanche is clearly worth the discipline. If the difference is small, pick snowball for the motivation boost. Either way, the most important thing is committing to a strategy and sticking with it.