DebtRunway

Snowball vs. avalanche

Same debts, same money, two different orders. Run both on your own numbers and see what the choice actually costs.

What you owe

$19,450 total

Replace the example rows below with your own debts. All three figures are printed on your statement.

Where do I find these numbers?
Debt
Any name you will recognise — “Visa”, “Store card”, “Car”. It only labels the row.
Balance
What you still owe today, not what you originally borrowed. On a statement it is the current or statement balance.
APR %
The yearly interest rate, near the interest charges on your statement. Cards often list several — use the purchase APR. Type 22.9, not 0.229.
Minimum
The smallest payment your lender will accept this month, shown as minimum payment due. On a loan it is your fixed monthly instalment.

On top of your $520 of minimums. This one number does most of the work.

$/ month
Which debt goes first?

If nothing changes

Nov 2032

6 years 4 months of minimum payments

Interest handed over

$8,425

Adding $200 a month

Mar 2029

2 years 8 months and you are done

Interest handed over

$3,380

$5,045 saved·3 years 8 months soonerThat is what the extra $200 a month is worth to you.

$0$4,863$9,725$14,588$19,450
nowyr 1yr 2yr 3yr 4yr 5yr 6
Your snowball planMinimum payments only
Debt by debt, and what to pay3 debts, in the order you clear them
DebtCleared inInterestTotal paidWhat to pay
1Store cardApr 20279 months$192$2,042Pay $255.00 a month through month 8, then $2.31 in month 9 to finish.
2Visa cardAug 20282 years 1 month$1,985$8,185Pay $155.00 a month through month 8, then $407.69 in month 9, then $410.00 through month 24, then $387.42 in month 25 to finish.
3Car loanMar 20292 years 8 months$1,203$12,603Pay $310.00 a month through month 24, then $332.58 in month 25, then $720.00 through month 31, then $510.06 in month 32 to finish.

Month 1 is this month. Each time a debt clears, its payment moves to the next one — which is why the amounts in the last column go up while your monthly total stays the same.

Snowball vs. avalancheBoth cost the same here
MethodDebt-freeInterest
snowballMar 2029$3,380
avalancheMar 2029$3,380

With these balances both methods cost the same, so pick whichever order you will stick with.

Month-by-month scheduleAll 32 payments, printable
MonthPaymentInterestBalance left
1. Aug 2026$720.00$220.73$18,950.73
2. Sep 2026$720.00$213.90$18,444.63
3. Oct 2026$720.00$206.93$17,931.56
4. Nov 2026$720.00$199.85$17,411.41
5. Dec 2026$720.00$192.63$16,884.04
6. Jan 2027$720.00$185.27$16,349.31
7. Feb 2027$720.00$177.77$15,807.08
8. Mar 2027$720.00$170.14$15,257.22
9. Apr 2027🎉 Store card paid off$720.00$162.35$14,699.57
10. May 2027$720.00$155.27$14,134.84
11. Jun 2027$720.00$148.09$13,562.93
12. Jul 2027$720.00$140.78$12,983.71

The argument in one paragraph

The avalanche is cheaper. That part is not in dispute — paying off the highest interest rate first is provably the least expensive order for any fixed monthly budget. The argument is about whether being cheapest on paper is the same as working in practice, given that the plan has to survive several years of ordinary life.

What each one is good at

The snowball is good at being finished. It gives you a completed debt early, often within a few months, and each completion makes the next one faster. If you have tried and abandoned a payoff plan before, this is the one built for you.

The avalanche is good at being cheap. If your highest-rate debt is also fairly small, it gives you an early win too and there is no reason not to use it. If you are the kind of person who has stuck with long projects before, take the money.

How to decide with the table above

Enter your real debts, then look at two numbers. First, the difference in total interest — that is the price of choosing the snowball. Second, the month each method clears your first debt, shown in the payoff order list.

If the interest gap is small and the avalanche’s first win is far away, take the snowball without guilt. If the gap is large, or both methods clear something quickly, take the avalanche. There is no wrong answer here that is worse than not starting.

Common questions

What is the difference between the snowball and the avalanche?
Only the order. Both pay the minimum on every debt and put all spare money against one target, rolling each cleared payment onto the next. The snowball targets the smallest balance first; the avalanche targets the highest interest rate first.
Which one is better?
The avalanche always costs less in interest. The snowball almost always clears your first debt sooner. Which is better depends on whether your obstacle is arithmetic or motivation — and for most people it is motivation.
How big is the difference, really?
Run your own numbers above. For typical household debts the gap is a few hundred dollars over several years. It grows when one debt has a much higher rate than the rest, and shrinks to almost nothing when your rates are similar.
Can I switch methods halfway through?
Yes. Nothing is locked in — these are just orders of payment, not products you sign up for. Many people clear one small balance for the momentum and then switch to avalanche order.
Does either method involve borrowing or fees?
No. Both use only the money you already have. Neither requires a new loan, a balance transfer, or a company to manage anything for you.

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