General
Debt Payoff Calculator: Snowball vs. Avalanche
When will you be debt-free? Compare the snowball and avalanche methods for up to four debts, with an extra monthly payment and the interest each costs.
Debt-free in
2 years and 8 months
with the avalanche method
Interest, avalanche
$4,118
highest rate first
Interest, snowball
$4,538
smallest balance first · 2 years and 8 months
Avalanche saves
$419
vs. the snowball
Minimums only
4 years and 6 months
$7,977 of interest
Paying $960 a month toward $26,000 of debt, the avalanche method clears it in 2 years and 8 months, with $4,118 of interest.
The snowball method takes 2 years and 8 months and costs $4,538 of interest: $419 more, in exchange for clearing smaller debts sooner.
Paying only the minimums would take 4 years and 6 months and $7,977 of interest, so the plan saves $3,858.
The avalanche starts with the 22.9% debt; the snowball with the smallest balance.
Your numbers
+Add a fourth debt
Total debt over time
When each debt is paid off
| Debt | Avalanche | Snowball |
|---|---|---|
| Debt 1 (22.9%) | 1 year and 10 months | 2 years |
| Debt 2 (10.5%) | 1 year and 11 months | 9 months |
| Debt 3 (6.9%) | 2 years and 8 months | 2 years and 8 months |
See what an extra payment changes
Same debts with the avalanche method — three extra monthly amounts. Every extra amount goes straight to the most expensive debt, so even a small one shortens the whole plan.
No extra payment
4 years
$7,589 of interest
$250 extra a month
2 years and 8 months
$4,118 of interest
$500 extra a month
2 years
$2,948 of interest
How the payoff plan works
Each month: every debt gets its minimum; what is left of the budget goes to the target debt
The monthly budget is the sum of every minimum payment plus your extra amount, and it stays the same until the last debt is paid. Each month, every debt first accrues interest at its yearly rate ÷ 12 and receives its minimum. Whatever is left goes to the target debt: the highest rate (avalanche) or the smallest starting balance (snowball). When a debt is cleared, its minimum joins the amount going to the next target.
Snowball or avalanche?
The two methods differ only in order. Both stop you from spreading extra money thinly across every debt, which is what keeps people in debt for years.
The avalanche saves the most. Every month, extra money goes where it stops the most interest from building up. With credit card rates often above 20%, clearing those first is the cheapest route.
The snowball builds momentum. Clearing a small debt in a few months frees its payment and shows progress quickly. Research on repayment behaviour suggests that early wins help some people stay on track, which can matter more than the interest difference.
Once a debt is gone, keep its payment going to the next one: that rollover is what makes either method work. For a single loan, the amortization calculator shows what extra payments do month by month.
Debt payoff FAQ
What is the difference between the snowball and avalanche methods?+
Both pay the minimum on every debt and put everything extra on one debt at a time, rolling each cleared debt's payment into the next. The avalanche targets the highest interest rate first, which costs the least interest. The snowball targets the smallest balance first, which clears whole debts sooner and can help motivation.
Which method should I choose?+
The avalanche always costs the same or less interest, so it is the better choice on the numbers. The snowball can be worth a modest extra cost if seeing debts disappear quickly keeps you going. When the gap shown here is small, pick whichever you are more likely to stick with.
What does the extra payment do?+
It goes on top of all the minimums, to one debt at a time in the order the method picks. Because it cuts the most expensive or smallest debt first and then rolls over, even a modest extra amount can take years off the plan.
Why does paying only the minimums take so long?+
On a credit card, much of the minimum goes to interest, so the balance falls slowly; if the minimum barely covers the interest, the debt never goes away. The calculator assumes your minimums stay fixed, while many card minimums shrink as the balance falls, which makes minimum-only repayment even slower in practice.
What does the calculator leave out?+
Fees, rate changes, promotional 0% periods, and new spending on the cards are not modeled, and interest is charged monthly at the yearly rate ÷ 12. It also assumes you keep paying the same total each month until the last debt is gone.
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Educational tool, not advice. This calculator illustrates a standard formula using the numbers you enter. It does not account for your full financial picture, taxes, or local market conditions, and it is not a recommendation to buy, sell, or hold any asset. Speak with a licensed professional before making investment decisions.
See our full disclaimer and how we calculate.
Last reviewed 2026-10-18 by the Yield Analyst team