How it works
Both methods pay the minimum on every debt each month and put all extra money toward one target debt. When a debt is paid off, its minimum rolls into the next target, so your total monthly payment stays the same.
The avalanche method targets the highest interest rate first. It always costs the least interest. The snowball method targets the smallest balance first, giving quick wins that many people find motivating.
Enter one debt per line as name, balance, rate, minimum, for example "Visa, 3500, 21.9, 95". The calculator compares both methods and shows the payoff order for the one you choose.
Questions people ask
Which is better, snowball or avalanche?
Avalanche saves the most money. Snowball can help you stay on track by closing accounts sooner. If the interest difference is small, choose the one you will stick with.
What happens when a debt is paid off?
Its minimum payment is added to the amount going to the next target debt, which is why payoff accelerates over time.
Does this account for minimum payments that shrink?
No. Minimums are held fixed as entered, which is how most people use a payoff plan. Card issuers' required minimums usually decline as balances fall.