Snowball vs Avalanche Calculator
Compare the debt snowball (smallest balance first) against the avalanche (highest rate first) on two debts — see which clears faster and cheaper.
How it works
Both apply every extra dollar to one target debt. Snowball targets the smallest balance; avalanche targets the highest rate. Interest each month = balance × APR ÷ 12.
The snowball attacks the smallest balance first for quick psychological wins; the avalanche attacks the highest interest rate first to minimize total interest. The avalanche is always mathematically cheaper or tied, but the snowball closes accounts sooner, which many people find easier to sustain. This tool shows the actual dollar gap so you can decide whether motivation is worth the extra interest.
Worked example
With a $3,000 card at 22% and an $8,000 loan at 12%, plus $200 extra a month, the avalanche hits the 22% card first and typically saves a few hundred dollars of interest versus the snowball, which would target the smaller balance regardless of rate.
Frequently asked questions
Which is better, snowball or avalanche?
The avalanche always costs less interest because it targets the highest rate first. The snowball can be better in practice if the early win of clearing a whole account keeps you motivated to continue.
How much does the choice usually matter?
It depends on the rate spread and balances. When the smallest debt also carries the highest rate, the two strategies are identical. The bigger the rate gap, the more the avalanche saves.
Do minimum payments still get made in both?
Yes. In both strategies you pay every minimum every month; the only difference is which debt receives the extra payment on top.
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Educational estimate, not financial advice. Confirm figures with your lender or a licensed professional.