Snowball vs Avalanche Calculator
Compare the debt snowball and debt avalanche methods side by side. See which strategy gets you debt-free faster and saves you the most in interest.
Debt Snowball vs. Debt Avalanche: which one is right for you?
Choosing between the debt snowball and debt avalanche methods is often a choice between mathematical efficiency and psychological motivation. Both are effective, but they prioritize different goals.
The Debt Snowball method focuses on paying off the smallest balance first while making minimum payments on everything else. When that small debt is gone, you "roll" its payment into the next smallest debt. This creates a series of quick wins that build momentum and keep you motivated.
The Debt Avalanche method focuses on the debt with the highest interest rate first. By knocking out the most expensive debt first, you minimize the total interest you pay over time. While this is mathematically faster and cheaper, it may take longer to see the first debt disappear entirely.
Which one should you choose?
The CFPB and other experts often note that the best method is the one you can stick with. If you are a person who needs to see immediate progress to stay focused, the snowball may be your best bet. If you are strictly focused on the lowest possible cost, the avalanche is the clear winner. This calculator helps you see the exact difference in months and dollars so you can make an informed choice.