What is the debt snowball method?

The debt snowball method pays minimum payments on all debts, then directs extra money to the debt with the smallest balance. When that debt is paid off, its payment rolls into the next smallest. It is psychologically motivating because you see quick wins.

What is the debt avalanche method?

The debt avalanche directs extra payments to the debt with the highest interest rate first, regardless of balance. This minimizes the total interest paid over time and is mathematically optimal.

Which method saves more money?

The avalanche method always saves more interest mathematically. However, research shows that many people succeed with snowball because the psychological momentum of quick wins keeps them on track. The best method is the one you will stick to.

What should I put as the extra payment?

Even $25-50 extra per month makes a significant difference. The extra payment is applied to the target debt. When a debt is paid off, its freed-up payment automatically rolls into the next target debt.

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Debt Snowball vs Avalanche Calculator

Compare debt snowball vs avalanche strategies side-by-side. See total interest saved, payoff dates, and payoff order. Free debt payoff calculator — no sign-up.

💱 Currency

Your Debts

Debt Name

Balance

Rate

Min Payment

₹

Total Debt: ₹19,500Min Payments: ₹440/mo

Extra Monthly Payment (above minimums)₹200

Total monthly payment: ₹640 · Extra payment gets directed to target debt

❄️ Avalanche saves more interest

Avalanche saves ₹2,950 in interest over Snowball

₹2,950 saved

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Debt Snowball

Lowest balance first — psychological wins

₹7,511

Total Interest

4y 11mo

Time to Debt Free

Payoff Order

1Credit Card B→

2Personal Loan→

3Car Loan→

4Credit Card A

💰 Saves More

❄️

Debt Avalanche

Highest interest first — mathematically optimal

₹4,561

Total Interest

3y 8mo

Time to Debt Free

Payoff Order

1Credit Card A→

2Credit Card B→

3Personal Loan→

4Car Loan

Which Method Should You Choose?

⛄ Snowball is best if…

✓You struggle with motivation

✓You want quick early wins

✓Your debt balances are similar in size

✓You have several small debts to eliminate

❄️ Avalanche is best if…

✓You want to minimize total interest paid

✓You have high-rate credit card debt

✓You're mathematically motivated

✓You can commit to a long-term plan

About This Tool

Enter all your debts and compare the Debt Snowball (lowest balance first) and Debt Avalanche (highest interest first) strategies side-by-side. See exactly how much interest each method costs, when you will be debt-free, and the payoff order.