Tools

Avalanche vs snowball: two ways to pay off debt.

List what you owe, add any extra you can put toward debt each month, and see two common payoff strategies compared side by side. This is a learning tool, not financial advice.

Your debts3 debts

Avalanche

Highest interest rate first

Time to debt-free3 years, 2 months
Total interest$3,159
Total paid$17,659
Debts cleared3

Payoff order

  1. 01Store cardmonth 9
  2. 02Credit cardmonth 30
  3. 03Car loanmonth 38

Snowball

Smallest balance first

Time to debt-free3 years, 2 months
Total interest$3,159
Total paid$17,659
Debts cleared3

Payoff order

  1. 01Store cardmonth 9
  2. 02Credit cardmonth 30
  3. 03Car loanmonth 38

With these numbers, both methods cost about the same in interest. The snowball method clears whole debts sooner, which some people find easier to stay motivated with.

What you owe over time
$0$7,250$14,500MO 0MO 19MO 38
AvalancheSnowballIllustrative
A line chart of total debt remaining over time for two payoff strategies. Both start at the same amount owed and fall to zero. The avalanche line (highest interest rate first) and the snowball line (smallest balance first) are compared month by month.

All amounts shown are illustrative estimates. See the assumptions below.

How to read this

Both strategies pay every debt its minimum each month. The difference is where the extra money goes. The avalanche method sends the extra to the debt with the highest interest rate (APR) first, which usually means paying the least interest overall. The snowball method sends the extra to the smallest balance first, so you clear whole debts sooner, which some people find easier to stick with.

When one debt is paid off, the money that was going to it rolls onto the next debt in line. That rolling payment is why the last debts disappear quickly once the first ones are gone.

APR (annual percentage rate) is the yearly cost of borrowing, shown as a percent. A minimum payment is the smallest amount a lender lets you pay each month to stay in good standing.

Assumptions

Illustrative estimate. Your real numbers will differ.

  • Interest is added once per month using a monthly rate of APR divided by 12. Real lenders may compound daily, so totals can vary.
  • Balances, rates, minimum payments, and your extra amount are assumed to stay the same the whole time.
  • No new charges, fees, late penalties, or promotional rates are included.
  • If a minimum payment is too small to cover a month of interest, that debt would never go down on its own. The tool flags this instead of guessing.