Debt Payoff Planner — Avalanche vs Snowball
Compare payoff strategies across multiple debts by total interest paid and time to clear.
Debt Payoff Planner
Snowball Method
Pay smallest balance first
Debt-free in
2y 5m
Total Interest
2,744
Psychological wins — clears small debts fast, boosting motivation.
Avalanche Method
Pay highest rate first
Debt-free in
2y 4m
Total Interest
2,427
Mathematically optimal — minimizes total interest paid.
Avalanche Advantage
The avalanche method saves you 317 in interest and 1m of payments compared to the snowball method.
Balance Over Time
Bar shows debt elimination progress over time (0% to debt-free).
Snowball Order
Smallest balance → biggest
- 1 Credit Card A 5,000 @ 24%
- 2 Personal Loan 5,000 @ 14%
Avalanche Order
Highest rate → lowest
- 1 Credit Card A 5,000 @ 24%
- 2 Personal Loan 5,000 @ 14%
The two strategies
| Avalanche | Snowball | |
|---|---|---|
| Order of attack | Highest interest rate first | Smallest balance first |
| Optimises for | Total interest paid | Motivation |
| Mathematically optimal | Yes | No |
| Typical extra cost | — | A few percent of total interest |
| First win arrives | Possibly much later | Usually quickly |
| Best when | Rates differ a lot, or you are confident of finishing | You have struggled to stick with a plan before |
Both methods pay the minimum on everything and direct all spare money at one target, rolling each cleared payment into the next. Avalanche always costs less in interest. Snowball is often the one people actually complete — and a completed suboptimal plan beats an abandoned optimal one.
Before choosing a strategy
- Keep a small emergency buffer —Clearing debt with every last unit of cash means the next unexpected expense goes straight back onto a card. One month of essential expenses first.
- Take any employer pension match —A 50–100% instant match beats paying down almost any consumer debt. Do not skip it to pay debt faster.
- Ask for a lower rate —Calling a card issuer and asking for a rate reduction works more often than people expect, especially with a decent payment history. It costs one phone call.
- Consider consolidation carefully —A balance transfer or consolidation loan can cut the rate substantially. Check the fee, the rate after any promotional period, and be honest about whether the freed-up card will stay unused.
- Deal with anything in collections first —Those have consequences beyond interest, and are often negotiable — sometimes for a fraction of the balance.
- Get free advice if it is unmanageable —Most countries have free, regulated debt advice charities. They negotiate with creditors routinely and cost nothing. Fee-charging "debt management" companies are rarely worth it.
About
The Debt Payoff Planner simulates two popular debt elimination strategies side by side. The Snowball method targets the smallest balance first for psychological wins. The Avalanche method targets the highest interest rate first to minimise total interest paid. Add all your debts, enter any extra monthly payment beyond minimums, and compare months to debt freedom and total interest for each strategy.
How to use
- 1 Click "Add Debt" to enter each debt: name, balance, APR, and minimum payment.
- 2 Set any extra monthly amount you can put toward debt repayment.
- 3 The results update instantly showing months to payoff and total interest for each strategy.
- 4 The payoff order table shows which debts are eliminated first under each method.
- 5 Avalanche usually saves more interest; snowball can be more motivating.
- What is the debt snowball method?
- The debt snowball method, popularised by Dave Ramsey, prioritises paying off the debt with the smallest balance first while making minimum payments on all others. When the smallest debt is eliminated, you roll its payment into the next smallest, creating a growing "snowball." The psychological benefit of quick wins makes this method effective for people who need motivation to stay on track.
- What is the debt avalanche method and why does it save more money?
- The avalanche method targets the debt with the highest interest rate first. Because high-interest debt accumulates the most interest over time, eliminating it first reduces the total interest you pay across all debts. Mathematically it is always optimal, but the highest-rate debt may have a large balance, making it slower to pay off and potentially harder to stay motivated.
- How much extra should I pay toward debt each month?
- Any amount above the minimum payment accelerates your payoff. Even an extra $50–100 per month can shave years off a debt and save thousands in interest. Use the planner to model different extra payment amounts and see the exact impact on months to payoff and total interest. Focus on consistency — a sustainable extra amount beats an aggressive amount you cannot maintain.
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