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Debt Snowball vs Avalanche Calculator

Add your debts and see two ways to pay them off: snowball (smallest balance first) and avalanche (highest interest rate first), compared side by side.

Your debts

Interest you could save with Avalanche vs Snowball

$111

Avalanche: debt-free in

2 years 7 months

Avalanche: total interest

$2,139

Snowball: total interest

$2,250

Avalanche: cleared by (extra goes to highest rate)

  1. 1. Buy Now Pay Later1 year
  2. 2. Credit Card1 year 2 months
  3. 3. Car Loan2 years 7 months

Snowball: cleared by (extra goes to smallest balance)

  1. 1. Buy Now Pay Later4 months
  2. 2. Credit Card1 year 3 months
  3. 3. Car Loan2 years 7 months

Assumes your total monthly debt payment (minimums plus extra) stays constant, with freed-up minimum payments rolling onto the next debt as each one is paid off. Avalanche targets the highest interest rate first to minimize total interest paid. Snowball targets the smallest balance first for faster early wins. Does not account for changing interest rates, fees, or missed payments. This calculator gives an estimate only and is not financial advice.

How to use this calculator

  1. 1. Enter the balance, interest rate and minimum payment for every debt you're paying off: credit cards, personal loans, car loans, buy-now-pay-later.
  2. 2. Enter any extra amount you can put toward debt each month, on top of your minimum payments combined.
  3. 3. The calculator shows the payoff order, timeline and total interest for both the snowball and avalanche methods, so you can see the real trade-off.

FAQ

What's the difference between snowball and avalanche?

Snowball pays off your smallest balance first, regardless of interest rate, so you clear a whole debt faster and get a motivating early win. Avalanche pays off your highest interest rate first, which minimizes the total interest you pay over the life of all your debts.

Which method is actually better?

Avalanche is always mathematically at least as good, since it targets the debt costing you the most first. Snowball can cost a bit more in total interest, but the quick wins from clearing a whole debt early are proven to help some people stick with a payoff plan when the maths alone doesn't.

Why does the order matter if I'm paying all my debts anyway?

Because your total monthly payment is fixed. As each debt gets paid off, its minimum payment doesn't disappear, it rolls onto the next debt in your list, so later debts get paid off faster and faster. Which debt you clear first changes how much interest builds up on the others while you wait.

A low-priority debt cleared first in my results, why?

Extra payments always go to whichever debt the method prioritizes, but a small debt with a decent minimum payment can pay itself off through minimums alone before its turn comes up. That's not a bug, it just means that particular debt didn't need the extra help.

Does this account for changing interest rates?

No, it assumes your rates stay constant for the whole payoff period. If you have a variable rate card or loan, treat this as a rough guide rather than an exact forecast.

Related reading

Debt Snowball Method vs Debt Avalanche: Which One Actually Gets You Debt-Free Faster?

Debt snowball vs debt avalanche compared with a worked example using real Australian debts, total interest paid, and honest guidance on which suits you.

Debt Consolidation: How It Works (and When It Actually Helps)

How debt consolidation actually works, when it genuinely helps, when it backfires, and how it compares to the debt avalanche and snowball methods.

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Disclaimer

This calculator assumes your total monthly debt payment (minimum payments plus any extra) stays constant throughout, with freed-up minimum payments automatically rolling onto the next debt in the payoff order as each one is cleared. It does not account for changing interest rates, fees, promotional periods, missed payments, or new debt added during the payoff period. This tool provides estimates only and is not financial advice. Consider speaking with a licensed financial counsellor if you're struggling with debt.