Debt Payoff Strategy Calculator
Compare snowball vs avalanche debt payoff strategies and see which saves you more money.
Your Debts
Total monthly payment: $740.00
Total Debt
$20,000.00
Total Min Payments
$540.00/mo
Snowball vs Avalanche
Debt Snowball: Psychological Wins
The snowball method pays off debts from smallest to largest balance, regardless of interest rate. When you pay off a debt, you "snowball" that payment into the next smallest debt. This creates quick wins and psychological momentum, which research shows helps people stay motivated and actually finish paying off their debt.
Debt Avalanche: Mathematical Optimal
The avalanche method pays off debts from highest to lowest interest rate. This is mathematically optimal because you eliminate high-interest debt first, saving the most money on interest overall. However, it may take longer to see progress if your highest-rate debt also has a high balance.
Which Should You Choose?
- Choose Snowball if: You need motivation and quick wins, or you might give up without visible progress
- Choose Avalanche if: You're disciplined, motivated by math, and want to minimize interest paid
- Consider a Hybrid: Start with snowball for momentum, then switch to avalanche once you're committed
Tips for Success
- Always pay at least the minimum on all debts
- Look for ways to lower interest rates (balance transfers, refinancing)
- Automate your payments to stay consistent
- Put any extra money (bonuses, tax refunds) toward debt
Learn More: CFPB's Guide to Debt Management
This calculator provides estimates for educational purposes only. Actual payoff times may vary based on payment timing and rate changes.