# Debt Snowball / Avalanche Calculator Compare debt snowball and avalanche payoff methods. See which strategy pays off debt faster and saves the most interest. Free debt payoff calculator. ## What this calculates Compare the two most popular debt payoff strategies side by side. Enter your debts and extra payment budget to see how the snowball method (smallest balance first) and avalanche method (highest rate first) differ in payoff time and total interest. ## Inputs - **Debt 1 Balance** ($) — min 0 — Balance of your first debt. - **Debt 1 Interest Rate** (%) — min 0, max 40 — APR on your first debt. - **Debt 2 Balance** ($) — min 0 — Balance of your second debt. - **Debt 2 Interest Rate** (%) — min 0, max 40 — APR on your second debt. - **Debt 3 Balance** ($) — min 0 — Balance of your third debt. - **Debt 3 Interest Rate** (%) — min 0, max 40 — APR on your third debt. - **Extra Monthly Payment** ($) — min 0 — Additional amount above minimum payments to put toward debt payoff. ## Outputs - **Total Debt** — formatted as currency — Sum of all debt balances. - **Avalanche Payoff Time** — formatted as text — Time to pay off all debts using highest-rate-first method. - **Avalanche Total Interest** — formatted as currency — Total interest paid using the avalanche method. - **Snowball Payoff Time** — formatted as text — Time to pay off all debts using smallest-balance-first method. - **Snowball Total Interest** — formatted as currency — Total interest paid using the snowball method. - **Interest Saved with Avalanche** — formatted as currency — How much you save choosing avalanche over snowball. ## Details The debt snowball and debt avalanche are two systematic approaches to paying off multiple debts. Both involve making minimum payments on all debts while directing extra money toward one priority debt at a time. The debt snowball method, popularized by Dave Ramsey, targets the smallest balance first regardless of interest rate. When that debt is paid off, its payment amount rolls into the next smallest balance like a growing snowball. The psychological wins of eliminating debts quickly help maintain motivation. The debt avalanche method targets the highest interest rate first, which is mathematically optimal and minimizes total interest paid. While it may take longer to pay off the first debt, this method typically saves more money overall. The difference between the two methods grows larger when there is a wide spread in interest rates across your debts. ## Frequently Asked Questions **Q: What is the difference between debt snowball and avalanche?** A: The debt snowball method pays off debts from smallest balance to largest, providing quick psychological wins that build motivation. The debt avalanche method pays off debts from highest interest rate to lowest, which minimizes total interest paid. Both methods require making minimum payments on all debts while directing extra money toward one priority debt. The snowball is better for motivation; the avalanche is better for saving money. **Q: Which method saves more money?** A: The avalanche method (highest rate first) always saves equal or more money in total interest compared to the snowball method. The savings can be significant when there is a large difference in interest rates between debts. However, if your debts have similar rates, the difference may be minimal. Some studies suggest that people using the snowball method are more likely to stick with their plan and actually become debt-free. **Q: How much extra should I pay toward debt each month?** A: Any extra amount helps, but the more you can pay, the faster you will be debt-free. Start by reviewing your budget for expenses you can temporarily reduce. Even an extra $100-$300 per month can cut years off your payoff timeline. Use the 50/30/20 rule as a starting point: needs (50%), wants (30%), and savings/debt payoff (20%). Consider directing all windfalls, tax refunds, and bonuses toward debt repayment. **Q: Should I close credit cards after paying them off?** A: Generally, no. Closing credit cards reduces your total available credit, which increases your credit utilization ratio and can lower your credit score. Instead, keep paid-off cards open with a zero balance or a small recurring charge that you pay in full each month. The exception is if a card has an annual fee and you do not use its benefits enough to justify the cost. You may also choose to close cards if keeping them open tempts you to overspend. **Q: What if I can only afford minimum payments?** A: If you can only make minimum payments, look for ways to free up extra money: sell items you do not need, take on a side job, reduce discretionary spending, or negotiate lower rates with your creditors. Even $25-50 extra per month makes a difference. Also consider a balance transfer to a lower-rate card, debt consolidation loan, or in extreme cases, credit counseling from a nonprofit agency. The most important thing is to stop adding new debt while paying down existing balances. --- Source: https://vastcalc.com/calculators/finance/debt-snowball Category: Finance Last updated: 2026-04-21