Debt Payoff Calculator: Snowball vs Avalanche Method (Which Is Faster?)

You've got multiple debts and you want them gone. The question is: which one do you pay off first? There are two strategies and they lead to very different outcomes.

The Avalanche Method (Mathematically Optimal)

Pay minimum on everything. Throw every extra dollar at the debt with the highest interest rate. When that's paid off, move to the next highest rate.

This saves the most money in interest. Period. If you're purely rational and motivated by math, this is the answer.

The Snowball Method (Psychologically Optimal)

Pay minimum on everything. Throw every extra dollar at the smallest balance. When that's paid off, move to the next smallest.

This gives you quick wins. Paying off a $500 credit card in month 2 feels amazing and keeps you motivated. Dave Ramsey made this famous because behavior matters more than math for most people.

Which Should You Choose?

The Debt Payoff Calculator lets you compare both side by side. Enter all your debts (balance, rate, minimum payment) and see the payoff timeline and total interest for each method.

The real answer: the best method is the one you'll actually stick with. If you need motivation from early wins, do snowball. If you're disciplined and the math drives you, do avalanche. The worst method is the one you quit after two months.

The Numbers on a Real Example

Say you have: $3,000 credit card (22% APR), $12,000 car loan (6%), $25,000 student loan (5%). Extra $300/month to throw at debt.

• Avalanche: Debt-free in 38 months. Total interest: $4,200
• Snowball: Debt-free in 39 months. Total interest: $4,450

One month and $250 difference. In this case, it barely matters. Go with whichever feels right.