Debt Payoff Planner

Debt Snowball vs. Debt Avalanche: Which is Better?

List your debts and how much extra you can pay each month. The planner shows you two plans side by side, with your debt-free date and the total interest you’ll pay under each one.

The snowball plan pays off your smallest balance first. You knock out a debt fast, and that quick win helps a lot of people keep going.

The avalanche plan pays off your highest interest rate first. Interest is what makes debt grow, so this plan saves you the most money.

Both plans work the same way. You pay the minimum on every debt and put all your extra money on one target. When that debt is gone, its payment rolls onto the next one. Your payments keep getting bigger, like a snowball rolling downhill.

Quick example:
Say you owe $500 on a store card at 15% and $3,000 on a loan at 24%. Your minimums are $25 and $90, and you can add $100 extra each month. Snowball goes after the $500 card first and pays it off in just 5 months. Avalanche goes after the 24% loan first. Either way, you’re debt-free in about 20 months. Avalanche saves you about $45 in interest.

Which one should I pick?
If avalanche saves only a little, like in the example, snowball’s quick wins may be worth it. If it saves a lot, avalanche is usually the smarter choice. The best plan is the one you’ll actually stick with.

The Fine Print:
This planner assumes your interest rates stay the same and you don’t add new charges. Your real results may be different.