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Debt snowball vs avalanche

Which debt payoff order is faster or cheaper?

Your numbers

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Lower interest method

Avalanche

Avalanche interest$3,592
Avalanche time3 yrs
Snowball interest$4,080
Snowball time3 yrs 1 mo
Interest difference$488

Tip. If the interest difference is small, pick the method you will actually stick with.

Assumptions

  • Up to three debts; leave unused debts at 0.
  • Snowball pays the smallest balance first; avalanche pays the highest APR first.
  • Every debt keeps paying its minimum, and a minimum freed by a cleared debt rolls into the next target.
  • Fixed APRs, no new charges, no promotional or deferred-interest periods.

Explore the numbers

Examples and charts

Start with a scenario, then read the response curve to see which input actually moves the answer.

Example 1

Small loan, expensive card

The smallest balance is not the priciest, so the two methods pick different targets.

Interest avalanche saves vs snowball

$488

Example 2

Bigger extra payment

The same debts with $500 extra, which shortens the timeline and shrinks the gap between methods.

Interest avalanche saves vs snowball

$338

Example 3

Where order really matters

A small cheap balance next to a large punishing one, which is when the two methods disagree most.

Interest avalanche saves vs snowball

$474

Sweeps extra monthly payment from half to one and a half times your value, holding everything else fixed.

Response curve

How extra monthly payment moves the result

Interest avalanche saves vs snowball

$488

$400$450$500$550$600$150$200$250$300$350
Chart axis: Extra monthly paymentNow $250 → $488

What this calculates

Compares two payoff orders on up to three debts: smallest balance first (snowball) against highest APR first (avalanche). Avalanche costs less interest by construction. Snowball clears individual debts sooner, which some people need to keep going.

How to use it

  1. Start with debt 1 balance and work down the form, or load an example to begin from a realistic case.
  2. Read the headline result alongside the supporting rows, which show the intermediate figures behind it.
  3. Check the assumptions. They decide what the number includes and, more importantly, what it leaves out.
  4. Sweep extra monthly payment on the response curve to see how much it actually moves the answer.
  5. Run a cautious case as well as an optimistic one before using the estimate in a decision.

Common mistakes

  • Comparing the two methods with different extra payments.
  • Leaving a cleared debt with a minimum still allocated to it.
  • Choosing avalanche on paper and then abandoning it because the first debt takes two years to clear.

Formula

Simulate month by month: accrue interest, pay every minimum, then throw the extra plus any freed minimums at the target debt

Inputs

  • Debt 1 balance
  • Debt 1 APR (%)
  • Debt 1 minimum
  • Debt 2 balance
  • Debt 2 APR (%)
  • Debt 2 minimum
  • Debt 3 balance
  • Debt 3 APR (%)
  • Debt 3 minimum
  • Extra monthly payment

FAQ

Which method saves more money?

Avalanche, always, because it retires the most expensive interest first. The question is whether the saving is large enough to matter to you.

What if a minimum does not cover the interest?

That balance grows every month and the plan never converges, so the result says the payoff is not reachable. Raise the minimum or the extra payment.

I only have two debts. What do I enter?

Set the third debt's balance, APR, and minimum all to zero and it drops out of the simulation.

Does a balance transfer change the answer?

A lot, and this page does not model it. A promotional 0% window reorders which debt is expensive, and the transfer fee plus the rate after the window both matter.

Are these numbers financial advice?

No. They are educational estimates based on the inputs and assumptions on this page. Confirm important decisions with a qualified professional and your own documents.

Read the full guideDebt snowball vs avalanche

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