List your debts, set one monthly payment, and watch avalanche vs snowball battle it out — payoff date, total interest, exact order.
Must exceed the sum of minimum payments. Add up to 5 debts:
Enter your debts to compare strategies.
Avalanche: attack the highest interest rate first, pay minimums on everything else. When it's gone, roll its payment into the next-highest rate. This is mathematically optimal — it always minimizes total interest.
Snowball: attack the smallest balance first regardless of rate. You score "paid in full" wins sooner, which keeps motivation high. Dave Ramsey popularized it for a reason: the best plan is the one you finish.
Run your numbers above — the gap is often smaller than people expect. If your highest-rate debt is also your smallest, both methods pick the same target and the difference is zero. The gap grows when a large, high-rate balance (typical credit card) sits next to small, low-rate debts. In that case avalanche can save thousands.
For each method, the calculator runs a month-by-month simulation: it applies your minimum payments to every debt, directs your extra payment — plus any freed-up minimums from cleared debts — at the current target, and accrues interest on the remaining balances. It repeats until every balance reaches zero. The months elapsed give your debt-free date; the interest accrued along the way gives the true cost of each strategy. That's why avalanche and snowball can show different finish dates even with identical debts and payments.
Pay minimums on all debts, then throw every extra dollar at the highest interest rate first. It minimizes total interest paid.
Pay minimums on all debts, then throw every extra dollar at the smallest balance first. You eliminate debts fastest by count, which builds momentum.
Avalanche saves the most money; snowball wins on motivation. If your interest rates are close, the difference is small — choose the one you'll stick with.
As a rule of thumb: kill high-interest debt (above ~7-8%) before investing, since guaranteed 22% "returns" from paying a credit card beat any market bet. For low-rate debt, investing while paying minimums can make sense.