Debt Payoff Calculator
Compare the Avalanche (highest-rate first) vs Snowball (smallest-balance first) debt payoff strategies.
Applied after minimums to target debt
4y 1mo
$5,523 interest
4y 1mo
$5,523 interest
Which strategy is right for you?
Avalanche: Saves the most money in interest. Best if you stay motivated.
Snowball: Pays off small debts first for psychological wins. Better for motivation.
Formula
Compares two payoff strategies: Avalanche (highest rate first) and Snowball (smallest balance first).
Both use: Months to Payoff = -log(1 - (Balance × Monthly Rate / Payment)) / log(1 + Monthly Rate)
Worked Example
Two debts: Credit card $7k @ 20% APR (min $150), Personal loan $3k @ 8% APR (min $100), $400/month total:
- Avalanche (20% first): 31 months, $2,300 total interest
- Snowball (smallest first): 32 months, $2,700 total interest
- Avalanche wins: 1 month + $400 saved
Common Questions
Avalanche vs. Snowball—which is better?
Avalanche saves the most money mathematically. Snowball provides quick wins and motivation. Choose Avalanche if disciplined; Snowball if you need emotional momentum.
What if I can pay more than the minimum?
Extra payments accelerate payoff and save huge amounts in interest. Every $100 extra can shave months off your timeline.
Should I consolidate my debts?
Consolidation can work if the new rate is lower. Otherwise, focus on paying down highest-rate debt first (avalanche).
Key Takeaways
- Avalanche (highest rate first) saves the most money and time—use it if you can stay motivated.
- Snowball (smallest balance first) provides quick wins and momentum—use it if you need psychological boosts.
- The most important thing: pick a strategy and stick to it. Consistency beats perfection.