Debt snowball vs avalanche calculator

Both methods pay the minimum on every debt and throw all your spare money at one target debt until it is gone, then roll that freed-up payment onto the next. They differ only in which debt is the target. The avalanche attacks the highest interest rate first — mathematically optimal, it always pays the least total interest. The snowball attacks the smallest balance first — you clear individual debts faster, which produces quick, motivating wins. This calculator runs both on your actual numbers so you can see the real gap.

On the math, the avalanche always wins — it costs the least interest and is usually fastest. But the gap is often smaller than people expect (sometimes a few hundred dollars), and the snowball's early wins are a real behavioural advantage: the people most likely to finish a debt-payoff plan are the ones who stay motivated. The honest rule: if the avalanche saves you a meaningful amount and you are disciplined, use it. If you have struggled to stick with payoff plans before, the snowball's momentum may be worth the small extra cost. Use the comparison above to see which applies to you.

Yes — because interest compounds on the balance you leave behind. Every extra dollar sent to a 22% card saves 22 cents a year; the same dollar sent to an 8% car loan saves 8 cents. The avalanche front-loads those high-rate savings, so over a multi-year payoff it can save hundreds to a few thousand dollars versus the snowball, depending on how spread out your rates are. When all your debts are at similar rates, the two methods nearly tie — and the snowball's motivation wins by default.

Then neither method has much "extra" to accelerate with, and your payoff will be slow and interest-heavy. If your minimums do not even cover the interest accruing, the balance grows no matter which order you choose — that is the signal to look beyond payoff strategy. A consolidation loan at a lower rate, a non-profit credit-counselling plan, or — if the debt is genuinely unpayable — a consumer proposal through a Licensed Insolvency Trustee are the next places to look.

It depends on the rate. Guaranteed-return math says paying off a 20% credit card beats almost any investment — you cannot reliably earn 20% after tax in the market, so clearing high-interest debt is the better "return." Lower-rate debt (a sub-6% car loan or student loan) is closer to a toss-up, especially if pausing investing means missing an employer match. As a rule: kill anything above ~8–10% before prioritizing investing; below that, it becomes a personal trade-off between guaranteed savings and expected growth.