Which is better: snowball or avalanche?

Avalanche usually saves more interest; snowball can provide faster wins by clearing small balances first. Pick the method you’ll stick to.

Should I still pay all minimums?

Yes. Make minimum payments on all debts, then direct extra to the target debt. This model assumes minimums are always covered.

What if rates are variable?

This model assumes fixed APRs. If rates move, rerun the numbers with updated APRs.

Can I include more than 3 debts?

This version supports up to 3. You can group smaller debts together or extend the tool later for more entries.

Does this include fees or new purchases?

No. Avoid new charges; fees or additional spending will extend payoff time.

finance calculator

Debt Snowball & Avalanche Calculator

See payoff time and interest using the snowball or avalanche debt payoff methods.

Results

Payoff time (months): 27.00
Payoff time (years): 2.25
Interest paid (est.): $1,773 USD

How to use this calculator

Enter balances, APRs, and minimums for each debt (up to 3).
Choose snowball (lowest balance first) or avalanche (highest APR first).
Add an extra payment amount you can apply monthly.
See payoff time and estimated interest under your chosen method.

Inputs explained

Payoff method: Snowball attacks the smallest balance first; avalanche attacks the highest APR first.
Extra payment (monthly): Additional cash you can direct to the target debt each month.
Debt balance: Current principal owed for each debt.
Debt APR %: Annual percentage rate for each debt; drives interest accrual.
Debt minimum: Required minimum monthly payment for each debt.

How it works

We allocate minimum payments to each debt, target one debt for extra payments based on the selected method, and roll freed minimums into the next debt as each is paid off.

Interest is accrued monthly using APR/12. Payoff time stops when balances reach zero or a safety cap (50 years).

Formula

Monthly interest = Balance × (APR/12)
Target debt = Lowest balance (snowball) or Highest APR (avalanche)

When to use it

Comparing emotional momentum (snowball) vs. interest savings (avalanche).
Planning how fast extra payments clear debt given your current APRs.
Testing scenarios like paying off a card before a refi or major purchase.

Tips & cautions

Avalanche usually minimizes interest; snowball can feel faster because small balances disappear sooner.
Revisit extra payments after raises or windfalls to accelerate payoff.
Keep paying minimums on all debts to avoid fees while targeting one for extra payments.
Simplified interest accrual; actual statements may vary with timing and fees.
Does not model variable rates or new charges—avoid adding new debt for best results.

Worked examples

Snowball: $3k @19.99%, $8k @12.5%, $200 extra

Payoff ≈ under 30 months
Interest depends on balances; avalanche may cut interest slightly faster

Add a 3rd loan

Enter balances and APRs; choose method to see speed vs. interest tradeoff

Deep dive

This debt snowball vs avalanche calculator shows how long it takes to become debt-free with your balances, APRs, and extra payments. Snowball knocks out the smallest balance first; avalanche targets the highest APR to reduce interest.

Enter up to three debts, pick a method, and see payoff months and estimated interest. Adjust extra payments to find a plan that fits your budget and keeps you motivated.

FAQs

Which is better: snowball or avalanche?: Avalanche usually saves more interest; snowball can provide faster wins by clearing small balances first. Pick the method you’ll stick to.
Should I still pay all minimums?: Yes. Make minimum payments on all debts, then direct extra to the target debt. This model assumes minimums are always covered.
What if rates are variable?: This model assumes fixed APRs. If rates move, rerun the numbers with updated APRs.
Can I include more than 3 debts?: This version supports up to 3. You can group smaller debts together or extend the tool later for more entries.
Does this include fees or new purchases?: No. Avoid new charges; fees or additional spending will extend payoff time.

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Approximate schedule; real statements may differ. Always make at least minimum payments. Not financial advice.