Free calculator · Personal Finance
Debt Payoff, Avalanche vs Snowball
Compares the avalanche and snowball payoff orders for up to three debts, showing the months to a zero balance and the total interest paid under each. Inputs are each debt’s balance, APR, and minimum payment, plus the extra amount paid every month.
By Devon Coombs, CPA, MBA · Assistant Teaching Professor of Finance, Santa Clara University · Reviewed October 2026
From the author: Devon Coombs, CPA, MBA teaches finance at Santa Clara University and works with corporate teams on practical AI.
Finance questions & answers · Student career guide · AI training for finance teams · Consulting · The 10 Laws of Finance
Should you use the debt avalanche or debt snowball?
Both approaches pay the required minimum on every debt. The avalanche puts extra money toward the highest interest rate. The snowball starts with the smallest balance. Compare the interest cost and timing using the same total monthly payment.
Interactive Tool
Debt Payoff, Avalanche vs Snowball
Debt 1
Debt 2 (set balance to $0 to skip)
Debt 3 (set balance to $0 to skip)
Avalanche
2 yr 3 mo
highest APR first
$2,045.73
total interest
Snowball
2 yr 4 mo
smallest balance first
$2,653.59
total interest
Total owed today
$10,700
3 debts
Avalanche saves
$607.86
interest vs snowball
Monthly budget = minimums + extra = $280 + $200 = $480, held constant until every balance reaches $0
Avalanche usually minimizes interest; snowball retires whole accounts sooner, which some people find easier to stick with. Both beat paying minimums only.
Understand the numbers
A worked example, step by step
Try the default example: $6,000 at 22% APR with a $150 minimum; $3,500 at 12% with a $90 minimum; and $1,200 at 6% with a $40 minimum. Add $200 extra each month.
This fixed teaching example is separate from your saved calculator inputs. Enter the assumptions above to reproduce it.
- Total monthly budget = $150 + $90 + $40 + $200 = $480.
- The avalanche directs the extra $200 to the 22% debt first; the snowball directs it to the $1,200 balance first.
- When a debt is paid off, keep the $480 total budget and redirect the freed payment toward the next debt.
Same $480 monthly budget · different payoff order
What the result tells you
With fixed rates, no fees, and equal payment discipline, targeting the highest APR first minimizes interest. An early small-balance win may help someone stick with a snowball plan; the calculator shows its cost tradeoff.
Assumptions to check
The model uses monthly APR/12 interest and fixed payment assumptions. Real lenders may accrue daily, vary minimums, change promotional rates, or charge fees. Do not miss minimum payments on other accounts while targeting one debt.
Try one change
Increase the extra payment from $200 to $300. Compare how much sooner both plans finish and how much total interest each saves.
Test it in the calculator ↑Learn the concept
This calculator comes from the free Corporate Finance: The 10 Laws of Finance course, where the concept is taught with readings, worked examples, and practice questions.
Precomputed reference tables
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Built by Devon Coombs, CPA, MBA, Assistant Teaching Professor of Finance at Santa Clara University.