Debt Payoff Calculator · Practical guide
Debt Snowball vs Avalanche: Which Pays Off Faster?
Both methods roll freed-up payments into the next debt — the difference is the order, and it can cost or save you hundreds of dollars.
At a glance
Quick answer
On the same debts, the avalanche method (highest APR first) always costs less interest than the snowball method (lowest balance first), while the snowball delivers quicker first wins. With a typical three-debt mix and $150 extra per month, avalanche saves about $263 and finishes one month sooner in the example below.
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Summary
Payoff Order
| Order | Name | Payoff Month | Interest Paid |
|---|
Month-by-Month Projection
| Month | Payment | Interest | Principal | Remaining Balance |
|---|
How Each Method Works
Both strategies pay the minimum on every debt and aim all extra money at one target. When that target is paid off, its minimum payment rolls into the extra, so the payment snowball grows on its own. Snowball picks the target by smallest balance; avalanche picks it by highest APR.
Same Debts, Two Strategies
Take three debts: a store card with a $2,000 balance at 24.99% APR ($60 minimum), a personal loan of $4,000 at 8% ($100 minimum), and a credit card with $6,000 at 15.99% ($120 minimum), plus $150 extra per month.
| Result | Snowball | Avalanche |
|---|---|---|
| Total payoff time | 35 months | 34 months |
| Total interest paid | $2,733 | $2,470 |
| Second debt cleared | Month 22 | Month 31 |
The store card is the first target under both methods (smallest balance and highest APR), so the two plans only diverge after month 11. Avalanche then attacks the 15.99% card, which is where the $263 savings come from.
Which One Should You Pick?
If the interest gap is small, pick the method you will actually stick with. Research on behavior consistently favors snowball for motivation — clearing an account in month 11 feels like real progress. If the gap is large, run both strategies above and let the dollar difference decide.
Frequently Asked Questions
Does the avalanche method always save more money?
Yes, mathematically it never costs more than snowball on the same debts, because it targets the highest interest rate first. The savings can be small when your highest-APR debt also has the smallest balance.
Can I switch strategies halfway through?
Yes. Both methods only change which debt gets the extra payment, so you can switch at any time without penalty. Just keep paying at least the minimum on every account.
What if two debts have the same balance or APR?
Then the order between them barely matters for total interest. Pick either one — the tiebreaker has almost no financial impact.
Should I include my mortgage in a snowball or avalanche plan?
Usually no. Mortgages carry low rates and long terms, so most plans focus on high-interest consumer debt like credit cards and personal loans first.