Debt snowball vs avalanche: what's the difference?
Both methods use the same idea. You pay the minimum on every debt, then put every extra dollar toward one “focus” debt. When it's paid off, its payment rolls onto the next one, so your total monthly payment stays the same while your debts disappear faster.
The only difference is which debt you focus on first:
Debt snowball: smallest balance first
You clear whole debts sooner, and those quick wins keep a lot of people going.
Debt avalanche: highest interest rate first
Less of your money goes to interest, so it usually costs less overall.
A worked example
Say you have a store card with $1,200 at 12% (minimum $40) and a credit card with $4,000 at 22% (minimum $90), and you can add $150 a month on top. That's $280 a month in total.
- Snowball pays off the store card in month 7. You're debt-free in 23 months and pay about $1,160 in interest.
- Avalanche goes after the 22% card first. You're also debt-free in 23 months, but pay about $1,010 in interest, roughly $150 less.
Put your own numbers in the calculator above to see how the two compare for you. Sometimes the gap is tiny, and sometimes it's big.
Which method should you choose?
The best method is the one you'll stick with. If the avalanche saves a lot, it's worth a look. If the difference is small, the snowball's early wins can be worth more than the few dollars of interest.
How this debt payoff calculator works
Each month, interest is added to every balance (your yearly rate divided by 12). Then your minimums are paid, and the rest goes to the focus debt. It assumes you stop adding to these debts and your rates stay the same.
Ways to pay debt off faster
- Add even a small extra payment. Change “Extra each month” and watch the debt-free date move.
- Put windfalls like a tax refund or bonus toward your focus debt.
- Ask your card company for a lower rate. It doesn't always work, but it costs nothing to ask.
Questions people ask
Is the debt snowball or avalanche better?
The avalanche usually costs less in interest. The snowball pays off whole debts sooner, which helps many people stay motivated. Try both in the calculator and see how big the difference is for you.
What if my minimum payment doesn't cover the interest?
Then that balance grows on its own. The calculator shows a friendly warning, and adding a little extra each month usually fixes it.
Does it include new purchases or fees?
No. It assumes you stop adding to these debts and your rates stay the same. Check with your lender for exact payoff amounts.
Are my numbers saved?
Yes. Everything you type saves automatically in this browser, so it’s here next time, and nothing is sent anywhere. Private windows and clearing your browsing data don’t keep it, so tap Save or print: Save a copy downloads a small file you can open later, or on another device, with Open a saved copy, and Print / Save as PDF gives you a copy to keep.