Compare the avalanche and snowball strategies and find the fastest, cheapest way to get out of debt.
Most people feel trapped by debt because they only make minimum payments. Minimums cover almost nothing but interest, so balances linger for years. This calculator shows what happens when you direct extra cash toward one target debt at a time.
The avalanche method targets the debt with the highest interest rate first. Mathematically, it always produces the lowest total interest and the shortest calendar payoff, because you stop the most expensive balance from growing. The snowball method targets the smallest balance first. It may cost slightly more in interest, but it produces early wins and frees up monthly cash flow faster.
Every month, the model pays the minimum on every debt except one target. Any remaining budget goes to that target until it is gone. Once a debt is paid off, its minimum payment gets rolled into the extra payment for the next target. This is the standard "payment snowball" behavior.
The calculator runs this loop twice, once ranking targets by interest rate (avalanche) and once by balance (snowball). It stops when every balance reaches zero and reports the exact months, total interest, and total amount paid.
Choose avalanche if you care about raw numbers and can stay motivated without quick wins. It saves the most money and time. Choose snowball if you have many small balances and need visible progress to keep going. Behavior beats math for some people; a plan you abandon costs infinitely more than a plan you follow.
A practical middle ground is the hybrid approach: pay off any very small balance first for a psychological boost, then switch to avalanche for the rest. This calculator lets you test both mathematically so the choice is grounded in your actual accounts.
Almost always. Higher interest rates generate more interest per dollar owed, so eliminating them first mathematically wins. The exception is when balances are nearly identical and one has only a slightly higher rate; the gap becomes tiny.
Yes. Personal finance is flexible. Many people start with snowball for quick wins, then switch to avalanche once the small balances are gone. The cost of switching is usually small compared with the benefit of staying consistent.
Then you cannot use either method effectively until you lower expenses, raise income, or reduce a minimum payment. This calculator requires your total minimum payments plus the extra payment to fit your budget. If a payment does not cover interest, the calculator warns you because the balance would grow forever.
Most people exclude mortgages and focus on consumer debt first. Mortgage rates are usually lower and the balance is larger, so it is a separate long-term goal. Add it only if you are specifically comparing mortgage acceleration strategies.