Debt Snowball vs Avalanche Calculator
Compare debt repayment strategies to find the best approach for your financial situation. The snowball method prioritizes smallest balances first, while the avalanche method targets highest interest rates.
Debt Information
Debt #1
Debt #2
Debt #3
Total Debt: $16,000
Minimum Payment: $440
Total Monthly Payment: $640
Strategy Comparison Summary
| Strategy | Total Interest | Total Payments | Payoff Time | Recommendation |
|---|---|---|---|---|
Debt Snowball | $3,738 | $19,738 | 3yr 2mo | Best Choice |
Debt Avalanche | $3,738 | $19,738 | 3yr 2mo |
Potential Savings with Snowball Method
Final Recommendation:
Based on your debt profile, the Snowball method is recommended. While it may cost slightly more in interest, it provides psychological benefits through quicker wins that can help you stay motivated throughout your debt payoff journey.
Understanding Debt Repayment Strategies
Debt Snowball Method
- Pay minimums on all debts
- Apply extra payments to smallest balance first
- Move to next smallest balance when one is paid off
- Provides psychological wins and motivation
- May cost more in total interest
Debt Avalanche Method
- Pay minimums on all debts
- Apply extra payments to highest interest rate first
- Move to next highest rate when one is paid off
- Mathematically optimal - saves most money
- May take longer to see initial progress
Which Method Should You Choose?
Choose Snowball if: You need motivation and quick wins to stay on track with debt repayment.
Choose Avalanche if: You want to minimize total interest paid and save the most money overall.
The best method is the one you'll stick with consistently!