Snowball vs avalanche: which pays off debt faster?
Both methods have you pay the minimum on every debt and then throw a fixed extra amount at one target debt. The difference is which debt you target first. The avalanche method targets the highest interest rate first, which mathematically pays the least total interest. The snowball method targets the smallest balance first, which clears individual debts quickly and gives you motivating wins.
As each debt is cleared, its payment rolls onto the next one — the "snowball" effect — so your payoff accelerates over time. This tool runs both strategies on your actual numbers so you can see the trade-off between interest saved and momentum.
How to use it
Enter each debt balance, its APR, and the minimum payment. Add any extra you can pay each month, then switch between avalanche and snowball to compare. The table always shows both so the difference is clear.
Frequently asked questions
Is the avalanche or snowball method better?
The avalanche method always costs the least in interest and usually clears everything a little sooner, because it attacks your most expensive debt first. The snowball method costs slightly more but eliminates whole debts faster, which many people find more motivating. If the difference in interest is small, pick the one you will actually stick with.
How does an extra payment help so much?
Every extra dollar goes straight to principal, so it stops accruing interest immediately and, as debts clear, their freed-up minimum payments pile onto the next debt. Even a modest extra payment can cut months or years off your payoff and save a large amount of interest.
What counts as the minimum payment?
Use the minimum your lender requires each month for that account. For credit cards this is often a small percentage of the balance; enter a realistic flat figure. The extra-payment box is where you add anything above the minimums.