Snowball vs avalanche
Debt payoff calculator
Enter your debts to see your debt-free date and total interest. Paying an extra $200 a month on a typical $26,800 mix of cards and loans cuts interest from $17,796 to $6,160 with the avalanche method. Works in USD, GBP, CAD, AUD and EUR.
Debt-free in
3 yr 3 mo
vs 11 yr 3 mo paying minimums only
Total interest
$6,160Saves $11,637 vs minimums
Snowball would cost
$6,706
$547 more interest
Remaining balance over time
- 1. Store cardpaid off in month 16
- 2. Credit cardpaid off in month 31
- 3. Personal loanpaid off in month 31
- 4. Car loanpaid off in month 39
Debt avalanche vs debt snowball
Avalanche: pay minimums on everything, then put every spare dollar toward the debt with the highest APR. Mathematically this is always cheapest.
Snowball: pay minimums on everything, then attack the smallest balance first. You clear accounts sooner, which research suggests helps many people stick with the plan, at the cost of slightly more interest.
Tips to pay off debt faster
- Ask your card issuer for a lower APR; a few points matter on large balances.
- Consider a 0% balance transfer if you can clear the balance before the promo ends, and count the transfer fee.
- Send windfalls like tax refunds or bonuses straight to your target debt.
- Check your take-home pay to find a realistic extra monthly payment.
Frequently asked questions
Is the debt avalanche or snowball method better?
The avalanche method (highest interest rate first) always costs the least interest. In our example of four debts with $200 extra a month, avalanche costs $6,160 in interest vs $6,706 for snowball. Snowball (smallest balance first) gives faster early wins, which helps some people stay motivated.
How much does paying only the minimum cost?
In the same example, paying only minimums takes 12 years and costs $17,796 in interest. Adding $200 a month cuts that to $6,160 and about 4 years.
What happens to the minimum payment once a debt is paid off?
This calculator rolls it into the next target debt, so your total monthly payment stays the same while the payoff speeds up. That rollover is what makes both methods work.
Disclaimer: These are estimates based on published tax rates for a single employee with standard deductions and no other income. Your actual pay depends on your tax code, benefits, credits and local taxes. This site is for information only and is not financial, tax or legal advice. Check with your tax authority or a qualified professional before making decisions.