Your Debts
Avalanche
—
Interest: $0
Highest rate first
Snowball
—
Interest: $0
Smallest balance first
Total Balance Over Time
Avalanche vs Snowball: How to Choose
Both methods start the same way: you pay the minimum on every debt, then throw every spare dollar at one target debt. The difference is which debt you target. The avalanche method attacks the debt with the highest interest rate first — the mathematically optimal choice, because it kills your most expensive debt and minimises the total interest you pay. The snowball method attacks the smallest balance first, clearing whole debts quickly so you feel momentum early.
The engine behind both is the same: as each debt is paid off, its old minimum payment "rolls" into the pot for the next target, so payments accelerate. This calculator simulates both strategies month by month using interest = balance × (APR ÷ 12) on each debt, then applies your minimums plus the extra payment to the right target.
Worked example: Say you owe $6,000 on a card at 22%, $12,000 on a car at 7%, and $20,000 in student loans at 5%, with $650 in minimums and a $300 extra payment. The avalanche clears the 22% card first and typically saves more in interest, while the snowball clears the $6,000 card first too (it's also the smallest) — but when your smallest balance isn't your highest rate, the two diverge, and avalanche pulls ahead on cost.
Frequently Asked Questions
What's the difference between avalanche and snowball?+
Both pay minimums on every debt and send extra to one target. Avalanche targets the highest interest rate first (minimises interest); snowball targets the smallest balance first (quick motivating wins). Avalanche is cheaper; snowball can be easier to stick with.
Which method is better?+
Avalanche almost always costs less interest and is often slightly faster. Snowball can win if you need motivation from clearing balances quickly. The best method is the one you'll actually follow to the end.
Does paying extra really speed things up?+
Yes. Once minimums cover interest, every extra dollar reduces principal. As each debt clears, its old minimum rolls into the pot for the next debt, so progress accelerates.