Debt Snowball vs Avalanche Calculator
Compare the two best-known ways to clear several debts: snowball (smallest balance first) and avalanche (highest interest rate first). Leave unused debts at zero.
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Debt Snowball vs Avalanche Calculator by TheCalcTools
How the Debt Snowball vs Avalanche works
Enter up to four debts with their balances, APRs and minimum payments, and the extra amount you can pay each month. The total budget is your minimums plus the extra, and it stays the same each month, even after a debt is cleared.
Every month, interest is added, minimums are paid on all debts, and everything left over goes to the target debt. With the snowball method the target is the smallest balance; with the avalanche method it is the highest APR. When a debt is cleared, its payment rolls into the next target. Avalanche always costs the least interest, while snowball clears accounts sooner, which many people find motivating. The best method is the one you will stick to.
The formula
Worked example
Two cards, a car loan and a student loan, with $250 extra each month (the defaults above):
| Debts | $7,000 at 27.9%, $900 at 15.9%, $6,000 at 6.5%, $3,500 at 4.5% |
|---|---|
| Extra | $250 a month |
- Avalanche: debt-free in 2 years, 5 months with $2,911 interest.
- Snowball: debt-free in 2 years, 7 months with $4,731 interest.
- Avalanche saves $1,820 in interest here.
Result:
| Avalanche: debt-free in | 2 years, 5 months |
|---|---|
| Avalanche: total interest | $2,911 |
| Snowball: debt-free in | 2 years, 7 months |
| Snowball: total interest | $4,731 |
| Interest avalanche saves | $1,820 |
Frequently asked questions
Which is better, snowball or avalanche?
Avalanche costs the least in interest. Snowball can keep you motivated by clearing small debts quickly. If the difference in cost is small, choose the one you will follow.
Do I keep paying minimums on every debt?
Yes. All debts get at least the minimum. The extra goes to the target debt.
What if my minimums change?
Card minimums usually shrink as balances fall. Using the starting minimum is a safe simplification: it keeps the budget steady, which speeds payoff.
What about consolidating?
Consolidation can help if the new rate is lower and fees are small. Compare with the APR calculator. For a single card, see the credit card payoff calculator.
Sources and further reading
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This calculator gives estimates for information only. It is not financial advice, and your lender's or provider's figures will govern. Rates, fees and rules vary. See our disclaimer.