Snowball vs. Avalanche Calculator

When you have multiple debts, the order you pay them off matters. The two most popular strategies are the debt snowball and the debt avalanche. Both assume you make minimum payments on every debt each month, then throw any extra money at one targeted debt until it’s gone.

The Debt Snowball Method

The snowball method targets debts from smallest balance to largest, regardless of interest rate. The psychology is powerful: you get quick wins that build momentum. When the first small debt disappears, its minimum payment rolls into the next one like a snowball growing downhill. Studies suggest people who use the snowball approach are more likely to stick with their plan because of the motivational boost from early victories.

The Debt Avalanche Method

The avalanche method targets debts from highest interest rate to lowest. This is the mathematically optimal approach—you minimize total interest paid over the life of your debts. The trade-off is that your highest-rate debt might also be your largest, which means it can take months before you see a debt fully eliminated.

Which Should You Choose?

If your highest-rate debt is also your smallest balance, both methods are identical. When they diverge, the avalanche method saves more money, while the snowball method keeps you motivated. The best strategy is the one you’ll actually follow through on.

Use the calculator above to see exactly how much each strategy costs you in interest and time. Then, if you want a plan that adapts to your actual paycheck schedule and due dates, try RealiPlan for free.