Snowball vs. avalanche: which wins?
Two popular strategies for paying off multiple debts, and they optimize for different things:
- Snowball — pay off the smallest balance first. Quick wins keep you motivated, but you may pay more total interest.
- Avalanche — pay off the highest interest rate first. Mathematically optimal: you always pay the least total interest.
The calculator shows both, so you can see the dollar difference and decide whether the motivation of snowball is worth the extra interest cost.
How the tool works
Each month it applies interest to each balance, pays every minimum, then throws all of your extra payment (plus the minimums freed up from paid-off debts) at the target debt in your chosen order. That "rollover" effect is what makes debt payoff accelerate over time.
A note on minimum payments
If you're only able to make minimum payments, this tool will show a long payoff horizon and heavy interest — that's the honest reality of carrying high-interest debt. Even a small extra payment shortens it dramatically.
Related tools
- Loan amortization calculator — single-loan schedule.
- Savings goal calculator — once you're debt-free, build the other side.