Debt Payoff Calculator & Planner
Compare the Snowball vs. Avalanche method to find your best path out of debt.
1. List Your Debts
2. Set Your Extra Payment
This is the extra amount you can pay towards your debts each month.
Your Debt-Free Plan
Snowball Method
(Lowest Balance First)
Debt-Free In
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Total Interest Paid
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Avalanche Method
(Highest Interest First)
Debt-Free In
–
Total Interest Paid
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Step-by-Step Payment Schedules
Snowball Plan
Avalanche Plan
Debt Snowball vs. Avalanche: Which is Right for You?
When you’re ready to get serious about paying off debt, two strategies stand out: the Debt Snowball and the Debt Avalanche. Both methods involve paying the minimum on all debts and using any extra money to attack one debt at a time. The only difference is the order. Our Debt Payoff Calculator models both to help you decide.
The Debt Snowball Method
With the Snowball method, you focus on paying off your debts from the smallest balance to the largest, regardless of the interest rate. You make minimum payments on everything, and throw all your extra cash at the smallest debt until it’s gone. Then, you take the money you were paying on that debt (plus the extra) and apply it to the next-smallest debt.
Pros: Provides quick psychological wins, which can be highly motivating and help you stick to the plan.
The Debt Avalanche Method
With the Avalanche method, you focus on paying off your debts from the highest interest rate to the lowest, regardless of the balance. You make minimum payments on everything and throw all your extra cash at the debt with the highest interest rate. Once it’s gone, you move to the debt with the next-highest rate.
Pros: Mathematically the most efficient method. You will always pay less in total interest and get out of debt faster.
The Bottom Line
Choosing between the two comes down to a choice between math and motivation. The Debt Payoff Calculator above will show you the exact numbers for your situation. The Avalanche method will save you the most money, but if the quick wins of the Snowball method will keep you motivated to see your plan through to the end, it might be the better choice for you.