Least interest paid
AvalancheDebt avalanche saves about $430.49 in interest. You are debt-free in 33 months, compared with 34 months for snowball. Snowball pays off its first debt in month 11, 11 months sooner than avalanche.
SwitchWize decision guide
Debt Snowball vs Avalanche Calculator: Which Pays Off Your Debt for Less?
Both methods pay the same amount each month. They only differ in which debt gets the extra money first. Paying the highest rate first saves interest. Paying the smallest balance first pays off one debt sooner.
What you can expect
- No login required
- No credit pull
- Assumptions shown
- Sources included
Quick answer
Use the avalanche if you want to pay the least interest. Use the snowball if paying off one debt soon will help you keep going. The calculator shows what the choice costs in dollars.
The debt avalanche usually costs less. It pays off the highest-rate debt first. The debt snowball pays off one debt sooner. Example: a $6,000 card at 24%, a $12,000 car loan at 7% and a $3,000 loan at 12%, plus $200 extra a month. Avalanche saves about $430 in interest. Snowball pays off its first debt 11 months sooner.
Compare debt consolidation loan ratesIf snowball
Pays off your first debt sooner. It usually costs more in interest when your smallest debt has a lower rate.
If avalanche
Costs the least interest. Your first debt may take longer to pay off if the highest-rate debt is large.
Key number to watch
Snowball starts on Debt 3. If its APR were 24% or more, avalanche would start there too.
Test your situation
See your result in dollars
Change any number below to match your situation. No login is required. Saved decisions stay on this device, and signed-in users can revisit them across devices.
$
What you owe today, from your latest statement. The example is a credit card. Enter 0 if you do not need this row.
%
The yearly interest rate on your statement. It is usually labeled APR.
$
The minimum payment due on your latest statement.
$
What you owe today. The example is a car loan. Enter 0 if you do not need this row.
%
The yearly interest rate on your statement or loan papers.
$
Your monthly payment. For a car loan, this is the fixed payment on your bill.
$
What you owe today. The example is a personal loan. Enter 0 if you do not need this row.
%
The yearly interest rate on your statement or loan papers.
$
The minimum or fixed monthly payment on your bill.
$
Money you can pay each month on top of all the minimums. Both methods use the same amount.
Your answer so far
Debt avalanche saves about $430.49 in interest. You are debt-free in 33 months, compared with 34 months for snowball. Snowball pays off its first debt in month 11, 11 months sooner than avalanche.
See the full breakdownDebt avalanche saves about $430.49 in interest. You are debt-free in 33 months, compared with 34 months for snowball. Snowball pays off its first debt in month 11, 11 months sooner than avalanche.
Snowball
$3,823
total interest paid
Modeled monthly payment: $750
Required monthly minimums: Not modeled
Paid off in 34 months
Debt at month : Not modeled
Interest through month : Not modeled
Total debt at promo expiry: Not modeled
Avalanche
$3,392
total interest paid
Modeled monthly payment: $750
Required monthly minimums: Not modeled
Paid off in 33 months
Debt at month : Not modeled
Interest through month : Not modeled
Total debt at promo expiry: Not modeled
Try a scenario
What could change this
Snowball starts on Debt 3. If its APR were 24% or more, avalanche would start there too.
How certain: high
With these numbers, avalanche saves about $430.49 in interest. Snowball pays off its first debt 11 months sooner.
How certain: high
Check these assumptions
- • Rates and minimum payments can change. Check your latest statements before you start.
- • The calculator assumes you add no new debt and miss no payments.
What matters most
First debt paid off soonest
SnowballSnowball pays off its first debt in month 11. Avalanche pays off its first debt in month 22.
Snowball plan
dependsDebt-free in 34 months, with $3,822.85 in interest. First debt paid off in month 11. Debts paid off in this order: Debt 3, then Debt 1, then Debt 2.
Avalanche plan
dependsDebt-free in 33 months, with $3,392.36 in interest. First debt paid off in month 22. Debts paid off in this order: Debt 1, then Debt 3, then Debt 2.
Side-by-side comparison
Which debt gets the extra money first
- Snowball
- The smallest balance
- Avalanche
- The highest interest rate
Total interest
- Snowball
- Usually more
- Avalanche
- The least of the two
First debt paid off
- Snowball
- Usually sooner
- Avalanche
- Sooner only if the highest-rate debt is small
Monthly payment
- Snowball
- Same total as avalanche
- Avalanche
- Same total as snowball
What you need to know
- Snowball
- Each balance
- Avalanche
- Each balance and each APR
What could go wrong
Debt snowball
- What needs to work
- You keep paying the same total each month, even after a debt is gone.
- Common problem
- After a debt is paid off, you spend its old payment instead of moving it to the next debt.
- What it could cost
- More interest on the high-rate debt you left for later.
- How to prepare
- Easy. You can switch to the highest rate first at any time.
Debt avalanche
- What needs to work
- You keep paying extra for months before the first debt is gone.
- Common problem
- You give up because no debt is paid off for a long time.
- What it could cost
- If you quit, you pay more interest than with either method.
- How to prepare
- Easy. You can switch to the smallest balance first at any time.
A simple backup plan
Pick one order and keep the payment the same
Both methods work only if you keep paying the same total each month. Pick the order you will stick with.
- 1List every debt with its balance, APR and minimum payment from your statements.
- 2Enter them here and see how much interest the avalanche saves.
- 3If the avalanche saves only a little, the snowball may be worth it. You pay off one debt sooner.
- 4Set up the minimums to pay automatically. Send the extra money to the first debt on your list.
- 5When a debt is gone, add its payment to the next debt on the list.
Educational illustration only. The right amount depends on your needs and timing.
What to do next
Question 1
Does your smallest debt also have the highest rate?
Yes: Both methods are the same. Pay that debt first.
No: Go to the next question.
Question 2
Does the avalanche save enough interest to matter to you?
Yes: Use the avalanche.
No: Go to the next question.
Question 3
Would paying off one debt soon help you keep going?
Yes: Use the snowball.
No: Use the avalanche.
Plain-text decision tree. Does your smallest debt also have the highest rate? If yes, Both methods are the same. Pay that debt first. If no, Go to the next question. Does the avalanche save enough interest to matter to you? If yes, Use the avalanche. If no, Go to the next question. Would paying off one debt soon help you keep going? If yes, Use the snowball. If no, Use the avalanche.
When to check again
- A debt is paid off.
- A rate on one of your debts changes.
- Your extra amount per month goes up or down.
- You take on a new debt.
Methodology
The calculator runs both plans month by month. Each month it adds interest at the APR divided by 12. Then it pays every minimum and sends the rest of the money to the debt that is next in line.
The three debts are plain examples, not real offers: a credit card, a car loan and a personal loan. Replace them with the numbers on your own statements.
- • Credit card minimums often fall as the balance falls. The calculator keeps each minimum the same.
- • It assumes rates stay the same and you add no new debt.
- • It does not count fees, late payments or promotional rates.
- • It stops at 600 months, which is 50 years.
The math does not depend on market rates. We check this page and its assumptions every three months. Editorial conclusions do not depend on affiliate availability.
Sources
Frequently asked questions
What is the difference between the debt snowball and avalanche?
Both pay the minimum on every debt and put extra money on one debt at a time. The snowball starts with the smallest balance. The avalanche starts with the highest interest rate.
Which method saves more money?
The avalanche usually saves more interest, because the debt with the highest rate gets paid down first. The calculator shows the dollar gap for your own debts. Sometimes the gap is small.
Why would anyone use the snowball?
It pays off one debt sooner, so you have one fewer bill to track. If that helps you keep paying extra each month, it can be worth some extra interest.
When are both methods the same?
When your smallest debt also has the highest rate, both methods pay the same debt first. If the order stays the same for every debt, the cost is the same too.
What happens to the payment from a debt I pay off?
You keep paying it, but to the next debt in line. That is why the extra money grows over time. The calculator does this for both methods.
What if my payments do not cover the interest?
Then the balance grows and the debt never gets paid off. The calculator warns you when this happens. Raise the extra amount, or call the lender about a lower rate or a payment plan.