Debt payoff

Snowball vs Avalanche

Compare the motivational benefit of clearing small balances first with the interest savings of targeting high APRs.

Debts

Columns: name · balance · APR

$

Comparison

Potential avalanche interest savings—
StrategyPayoff timeInterest
Snowball
Smallest balance first		——
Avalanche
Highest APR first		——
The model estimates each minimum payment as 2% of the starting balance with a $25 floor, then applies your extra payment to the priority debt.

How the two strategies differ

The snowball method applies extra money to the smallest current balance. The avalanche method applies it to the highest APR. Both continue estimated minimum payments on all other debts.

Important limitation

Real card minimums and loan schedules vary. Promotional rates, fees, daily interest, late payments and lender rules are not modeled. Use lender statements for a binding payoff quote.