Debt Avalanche vs. Debt Snowball Comparison Calculator
See which strategy can reduce your debt faster and potentially lower total interest costs.
Additional Information and Definitions
Avalanche Total Debt
Enter the combined amount of all debts if applying the Avalanche method. Avalanche focuses on highest interest first.
Avg Interest (Avalanche) (%)
Approximate weighted average interest rate across your high-interest debts for the Avalanche method.
Monthly Payment (Avalanche)
The monthly amount you can allocate to pay off your Avalanche-targeted debts.
Snowball Total Debt
Sum all debts for the Snowball approach, focusing on smallest balance first psychologically.
Avg Interest (Snowball) (%)
Approximate interest rate if following the Snowball method. Smaller balances get priority, interest might vary.
Monthly Payment (Snowball)
The monthly amount you can put toward the Snowball approach to pay down smaller debts first.
Pick Your Best Debt Strategy
Estimate months to payoff and total interest for both methods side by side.
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Debt Strategy Definitions
Key terms explaining how each payoff method works in broad strokes.
Avalanche Method:
A technique prioritising the highest interest debt first. This can save on total interest over time.
Snowball Method:
Focuses on the smallest balance first for motivational quick wins, building momentum to tackle bigger debts.
Monthly Payment:
How much you allocate each month to tackle your overall debt in either avalanche or snowball strategy.
Interest Rate:
The percentage cost of borrowing added monthly to your outstanding debt balance, potentially compounding cost.
5 Surprising Insights about Debt Payoff Strategies
Ever wonder why there's so much debate over avalanche vs. snowball? Here are five unexpected revelations.
1.Motivation Matters
Even if avalanche sometimes saves more money, the psychological boost from finishing a small balance quickly can be priceless. Early wins can foster a strong payoff habit.
2.Multiple Debts, Single Stress
People often underestimate the mental toll of juggling many balances. Consolidating or systematically paying them down can reduce anxiety and simplify budgeting.
3.Refinancing Twists
Sometimes transferring high-interest debt to a lower-interest vehicle can give avalanche an even bigger advantage. But watch out for transfer fees and teaser rates.
4.Small Differences, Big Impact
A seemingly tiny interest spread, like 2% or 3%, can snowball into major savings when your balances are large or your timeline is long. Double-check your assumptions.
5.Try a Hybrid
Some combine the best of both: pay off a tiny balance for a quick win, then switch to targeting the highest rate for maximum financial benefit.