Debt Payoff Calculator
Compare the snowball and avalanche methods side by side. Add your debts below and see which strategy saves you the most.
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Snowball vs. Avalanche: Which Debt Payoff Method Is Best?
Both the snowball and avalanche methods help you pay off debt faster than making minimum payments. The difference is in the order you tackle your debts. The snowball method focuses on smallest balances first for psychological wins. The avalanche method targets highest interest rates first to save the most money.
Your calculator above compared both methods side by side. Here's how to choose which one is right for you.
Snowball Method
List debts from smallest to largest balance. Pay minimums on everything, then throw all extra money at the smallest debt. When it's paid off, roll that payment to the next smallest. This builds momentum — each paid-off debt motivates you to keep going.
Best for: People who need motivation and behavioral wins. The snowball method costs slightly more in interest but has a higher success rate because you see progress faster.
Avalanche Method
List debts from highest to lowest APR. Pay minimums on everything, then put all extra money toward the highest-interest debt. This saves the most money mathematically.
Best for: People who are disciplined and want to minimize total interest paid. If the highest-interest debt also has the largest balance, it may take months before you see a debt fully paid off.
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Frequently Asked Questions
Which method should I use?
The best method is the one you'll stick with. If you're motivated by seeing debts disappear, use the snowball method. If you want to save the most money, use the avalanche method. The calculator shows both — compare the interest and timeline differences to decide.
What if I can't afford the minimum payments?
Contact your creditors immediately. Many offer hardship programs, reduced interest rates, or payment deferrals. Consider credit counseling from a non-profit agency. The worst thing you can do is ignore the problem.
Should I invest or pay off debt?
In general, pay off debt with interest rates above 8-10% before investing beyond your employer's 401(k) match. For lower-rate debt (mortgage, student loans), investing may make more sense since market returns historically exceed those rates.