Snowball Versus Avalanche
When repaying multiple debts, especially revolving debts like credit cards, two popular strategies are:
- Avalanche Method - Targets your highest interest rate debt first, minimizing total cost.
- Snowball Method - Targets your smallest balance first, delivering quick wins to keep you motivated.
Both strategies work the same way: pay the minimums on all debts, then direct extra money toward one high priority debt. When that debt is gone, roll its payment to the next target.
Use this tool to see the difference. Enter the debts you want to pay off and their minimum payments. Then set the Extra Monthly Payment amount - what you'll pay beyond the minimum.
Your debt reduction budget. How much can you pay in addition to the required minimum monthly payments?
Total Debt
Monthly Payment
Debt-Free Date
Calculating...
Avalanche Method
Pay highest interest rate first.
Snowball Method
Pay smallest balance first.
Repayment Timeline
Click a button to compare repayment times for each debt.
Understanding Debt Payoff Strategies
Both strategies work by focusing your extra payment on one debt at a time. When that debt is paid off, the payment "rolls over" to the next debt, creating a snowball effect that accelerates your progress.
- Avalanche is mathematically optimal - you'll pay less overall since interest rate is the top priority.
- Snowball provides psychological wins that can help you stay motivated, which is also important for success.
The best approach? It's the one that you motivates you the most.
About Minimum Payments
This calculator assumes the minimum payments you enter remain the same until each loan is repaid. This way it works for any kind of debt, not just revolving debt (where the minimum payment decreases until it reaches around $25 or so).
Click below to see the impact of decreasing payments and the estimated minimum payment changes.