HOME / FINANCE & ECONOMICS / PERSONAL FINANCE / DEBT PAYOFF STRATEGY CALCULATOR (AVALANCHE VS SNOWBALL)
Finance & Economics / Personal Finance
Debt Payoff Strategy Calculator (Avalanche vs Snowball)
Your Debts
Strategy Comparison
Avalanche: Mathematically optimal - saves the most on interest
Snowball: Psychological wins - quick victories boost motivation
Compare debt avalanche and debt snowball strategies to balance psychological momentum against interest minimization.
Formula
Avalanche prioritizes highest APR first; Snowball prioritizes smallest balance first; Total interest = Sum(payments) - Sum(principal).
Worked Example
totalDebt18000
extraMonthlyPayment300
strategyComparisonAvalanche vs Snowball
Result: Avalanche saves interest; Snowball may create earlier motivation winsThe avalanche method generally reduces total interest, while snowball can improve adherence by producing faster account closures.
Frequently Asked Questions
Which strategy is mathematically best?
Avalanche usually wins on cost because it attacks high-interest balances first.
When does snowball make sense?
Snowball can be better behaviorally if quick early wins help you stay consistent and avoid abandoning payoff plans.