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Debt Payoff: Avalanche vs. Snowball
List every debt, tell us what you can pay per month, and we'll run both payoff strategies — highest-rate-first and smallest-balance-first — and show you the time and interest difference, honestly.
Your debts
How this is calculated
Every month, the simulation charges each debt its share of interest (its APR ÷ 12), pays the minimum on every debt, then puts your entire extra amount at one target debt. Avalanche targets the highest APR first — that's the mathematically optimal order, because expensive interest dies first. Snowball targets the smallest balance first — you clear whole accounts sooner, which is worth real money in motivation even though it usually costs somewhat more in interest. When a debt is paid off, its minimum payment rolls into the attack on the next target — that rollover is where both strategies get their speed.
We run both strategies on your actual numbers and show the difference, because the honest answer to "which is better?" is: it depends on the gap. If avalanche saves you $40, pick whichever keeps you paying. If it saves you $1,400, that's a real argument. Our avalanche vs. snowball article walks through the psychology; this page does the arithmetic.
A worked example
Three debts: a $8,000 card at 24%, a $3,500 card at 18%, and a $1,200 loan at 8%, with $250 in combined minimums and $200 extra. Avalanche clears everything a bit sooner and cheaper than snowball — but snowball hands you your first closed account months earlier. Type your own numbers above; the receipt shows both totals and the chart shows both payoff curves.
Common questions
Which strategy should I pick? The one you'll still be following in month eighteen. The receipt shows exactly what avalanche saves on your numbers — if the gap is small, the motivational win of snowball is cheap; if it's large, avalanche earns its keep.
What about consolidation or balance transfers? They can lower your average rate, which changes this math — rerun the comparison with the new rate. Watch transfer fees (typically 3–5%) and what the rate becomes after the promo period.
Should I stop saving while paying debt? Keep a small emergency fund first — without one, the next surprise expense goes straight back on the card you just paid down.
Assumes fixed APRs and no new charges — a real card you keep spending on will take longer. General information, not personalized financial advice. Found an error? Tell us and we'll fix it.