Debt Snowball vs Avalanche Calculator
Compare two ways of paying off several debts and see which saves more.
Two ways to attack several debts
Both methods pay the minimum on every debt and put all spare money on one debt at a time. The avalanche targets the highest interest rate first, which costs the least. The snowball targets the smallest balance first, which gives quick wins and can help you stay motivated.
Example
Debts of 5,000 at 22%, 3,000 at 15% and 1,000 at 8%, with 200 extra a month: the avalanche takes 2 years 5 months and costs about 1,972 in interest. The snowball takes 2 years 6 months and about 2,479, so the avalanche saves roughly 507.
Leave unused debts at 0. When one debt is cleared, its payment rolls into the next. The avalanche never costs more in interest, but the best method is the one you will actually stick with.
Frequently asked questions
Which method is better?
The avalanche saves the most money. The snowball often keeps people going. The calculator shows the cost of the difference.
Should I include a mortgage?
Usually not. Use this for cards, personal loans and similar debts with higher rates.
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