What is the avalanche vs snowball debt payoff method?

The avalanche method directs extra payments to the highest-interest debt first, minimising total interest paid over time. The snowball method pays the smallest balance first, providing quick psychological wins. Avalanche always saves more money; snowball may be more motivating if you need early momentum.

Which debt should I pay off first?

Mathematically, always pay the highest-interest debt first. Credit card debt at 20–25% APR should almost always be prioritised over mortgages (3–7%) or student loans (4–8%). The interest rate difference compounds significantly over years.

How much extra should I pay on debt each month?

Even an extra $50–$100 per month can save thousands in interest and cut years off your payoff timeline. The extra payment reduces principal faster, which reduces future interest charges — creating a positive feedback loop.

RRédeWise

← All calculators·💳Wealth Building

Debt Payoff Calculator — Avalanche vs Snowball Compared

Which strategy clears your debt faster — paying highest rate first (Avalanche) or smallest balance first (Snowball)? See the exact interest saved and your debt-free date for both.

Avalanche saves the most interest — $49 saved

Avalanche

Debt-free in 81 months

Total interest paid: $14,385

Snowball

Debt-free in 82 months

Total interest paid: $14,434

AI Insights

1Throw every extra dollar at “Credit Card” first — it’s your highest rate at 19.9% APR.

Remaining Balance Over Time

Your Debts

Debt nameBalanceAPR %Min. payment

Extra monthly payment$0

$0$1,000

Estimates only — not financial advice. Always check with a qualified adviser before you act.

Compound Interest Calculator

See how compound interest grows your money. Apply the Rule of 72.

Mortgage Affordability Calculator

How much house can you afford? Income-to-payment ratios for 16 markets.

Avalanche vs Snowball: which is better?

Avalanche (mathematically optimal) — pay minimums on all debts, put extra toward the highest APR debt first. Minimises total interest paid.
Snowball (motivational) — pay minimums on all, put extra toward the smallest balance first. Faster early wins, but costs more interest overall.

For most people with similar-sized debts, the difference is small. If your highest-rate debt is also your smallest, both strategies are identical. The best strategy is the one you stick to.