Your debts
Everything you can put toward debt each month, minimums included.
Side by side results
Snowball smallest balance first
Avalanche highest APR first
Standard amortization math: interest accrues monthly at APR/12 on each remaining balance. Minimum payments are made on every debt each month, and all extra money goes to the current target debt. When a debt is eliminated, its payment rolls into the next target. This is an estimate for planning; your lender's exact payoff timing may differ slightly.
How each method works
Debt snowball: pay minimums on every debt, then throw all extra money at the smallest balance. When it is gone, roll its payment into the next smallest. You get quick wins early, which research suggests keeps people going. Harvard Business Review's well-known "Power of Small Wins" research (Amabile and Kramer) found that even minor milestones boost motivation and engagement far out of proportion to their size, which is exactly the psychology the snowball exploits.
Debt avalanche: pay minimums everywhere, then attack the highest APR first. This is mathematically optimal: every extra dollar kills the most expensive interest first, so you pay the least interest and usually finish a bit sooner. The tradeoff is patience, because your first payoff can take much longer to arrive.
The honest truth: both beat minimum-only payments by years. The right choice depends on your rate spread and your personality, which is what this calculator's recommendation weighs.
Frequently asked questions
Which saves more money, snowball or avalanche?
The avalanche always wins on math, because it targets the most expensive interest first. How much more it saves depends on your rate spread. With rates clustered within a few points, the difference is often under a few hundred dollars. With a wide spread, like a 29% card next to a 6% loan, the avalanche can save thousands.
How much more does the snowball usually cost?
For typical credit card debt with rates between 18% and 26%, the snowball usually costs $300 to $1,500 more in total interest than the avalanche. For debts with very similar rates, the difference can be under $100, which makes the snowball's motivational edge the smarter pick.
Can I switch methods halfway through?
Yes, and many people do. A popular hybrid starts with the snowball to knock out one or two small debts for momentum, then switches to avalanche order for the remaining balances. There is no penalty for switching. The only real risk is decision fatigue, so commit to a method for at least one full payoff before reassessing.
Should I include my mortgage or car loan?
Generally no, unless the rate is high. Mortgages usually carry far lower rates than consumer debt, and the money is often better used against high-interest balances first. This calculator works best for credit cards, personal loans, medical debt, and other consumer balances.
What if my budget barely covers the minimums?
Then extra payments are small and the two methods look similar. In that case the priority is raising income or cutting spending to create real extra payment room, because minimum-only payments can stretch a payoff to 8 to 15 years. Even $50 extra a month changes the math meaningfully.
Why does motivation matter so much in debt payoff?
Because the mathematically perfect plan fails if you quit. Harvard Business Review's research on small wins shows that visible progress fuels continued effort, which is why the snowball's early payoffs help so many people finish. If you are disciplined and numbers-driven, take the avalanche's savings. If you have quit payoff plans before, take the snowball's momentum.
Guides
Why the hybrid approach may beat both pure methods.
Worked examples showing exactly what the snowball premium is.
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