Add your debts below and compare Snowball (smallest balance first) vs. Avalanche (highest rate first) strategies. See which saves more money and which gets you debt-free faster.
The debt snowball method pays off debts from smallest balance to largest for quick psychological wins. The debt avalanche method targets the highest interest rate first to minimize total interest paid. Both strategies make minimum payments on all debts while directing extra cash to one priority debt. The avalanche method always saves more money; the snowball method has higher completion rates due to motivational momentum.
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This tool simulates two popular debt payoff strategies month by month. The Avalanche method puts extra payments toward the highest-interest debt first, minimizing total interest paid. The Snowball method targets the smallest balance first, giving you quicker psychological wins as debts are eliminated.
Both strategies make minimum payments on all debts, then apply any extra payment to the target debt. When a debt is paid off, its minimum payment rolls into the next target, creating an accelerating "snowball" or "avalanche" effect.
Mathematically, the Avalanche method always saves more money. However, research from behavioral economics shows that the quick wins from the Snowball method help many people stay motivated and actually complete their payoff plan. The best strategy is the one you stick with.
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