Debt Payoff Calculator
Compare the Snowball method (smallest balance first) against the Avalanche method (highest rate first). See exactly how much interest each strategy saves and when you'll be debt-free.
1 Your Debts
2 Extra Monthly Payment (optional)
Amount above minimum payments to accelerate payoff.
Snowball Method
Smallest balance first
—
Total Interest
—
Payoff Date
—
Avalanche Method
Highest rate first
—
Total Interest
—
Interest Saved vs Snowball
—
Total Debt Balance Over Time
Payoff Order Comparison
When each debt is eliminated under each strategy
| Debt | Balance | Rate | Snowball | Avalanche |
|---|---|---|---|---|
| Add debts above | ||||
Snowball vs Avalanche: Which Debt Payoff Strategy Wins?
Both the Snowball and Avalanche methods use the same core mechanic: you make minimum payments on all debts, then throw any extra money at one targeted debt. The difference is which debt you target first.
The Snowball Method
Made famous by Dave Ramsey, the Snowball method targets your smallest balance first. Once that debt is paid off, you roll the freed minimum into the next smallest. The psychological wins from clearing debts quickly keep many people motivated — research shows this behavioral advantage leads to higher completion rates.
The Avalanche Method
The Avalanche method targets your highest interest rate first — minimizing the total interest you pay. Mathematically, this is always the cheaper strategy. The savings vs. Snowball are typically $500–$3,000 depending on your debt mix and rates.
Which Should You Choose?
- Choose Snowball if you need quick wins to stay motivated, or if your balances are similar in size.
- Choose Avalanche if you're disciplined and want to minimize total cost.
- Either method beats paying minimums only — both result in debt freedom years sooner.
Once your consumer debt is cleared, use the Extra Payment Calculator to apply that freed cash flow toward your mortgage, or the Home Budget Calculator to plan a home purchase with a clean debt profile.
Frequently Asked Questions
What is the difference between the avalanche and snowball methods?
Avalanche pays extra toward the highest-interest debt first and saves the most interest. Snowball pays the smallest balance first, which clears accounts sooner and keeps some people motivated. Both keep the minimum payment on every other debt.
How long will it take to pay off my credit cards?
It depends on the balance, the APR and what you pay above the minimum. Paying only the minimum on a card at 22% APR can take more than 15 years. A fixed payment set well above the minimum usually cuts that to 2–4 years.
Should I consolidate my debt?
A consolidation loan or 0% balance transfer helps if the new rate is clearly lower and you stop adding new balances. Include balance transfer fees (typically 3–5%) and check what the rate becomes after any promotional period.
Does paying off debt help me qualify for a mortgage?
Yes. Lower monthly debt payments reduce your debt-to-income ratio, and lower card balances reduce credit utilization, which can raise your credit score and the rate you are offered.