Free Tool
Debt Payoff Calculator: Snowball vs Avalanche
Add your debts, set an extra monthly payment, and instantly compare how many months each strategy takes and how much interest each one costs.
Snowball (smallest balance first)
36 months
$2,239 total interest
Payoff order: Credit card, then Car loan
Avalanche (highest rate first)
36 months
$2,239 total interest
Payoff order: Credit card, then Car loan
Both methods match for these debts because your smallest balance is also your highest rate, so the payoff order is identical. Change a balance or a rate to see the two strategies diverge.
USE THIS TOOL FREESnowball vs avalanche: which is faster?
Avalanche is mathematically faster because it eliminates the most expensive interest first. Snowball can feel faster because paying off a small balance quickly builds motivation. Use the calculator above with your real numbers to see the actual gap for your situation.
Worked example
With a $4,500 credit card at 22 percent and a $12,000 car loan at 6 percent, adding $150 extra a month, avalanche typically saves several hundred dollars in interest compared to snowball, while snowball clears the small card balance first for an early motivational win.
FAQs
Snowball vs avalanche: which is faster?
The avalanche method, which pays extra toward the highest interest rate debt first, is mathematically faster and cheaper. The snowball method, which pays off the smallest balance first, often wins in practice because early wins build momentum and keep you motivated.
How much extra should I pay toward debt each month?
Pay as much as your budget allows after essentials, giving and a small starter emergency fund. Even an extra $50 to $100 a month meaningfully shortens a payoff timeline.
Should I pay off debt before investing?
Most plans prioritize a small starter emergency fund first, then high interest debt above roughly 7 to 8 percent, then simultaneous saving and investing alongside any remaining lower interest debt.
Keep learning
Visit our free training, or read How to Get Out of Debt and How to Build Wealth From Zero.
PleniSeed provides educational information and does not provide individualized financial, investment, tax or legal advice.