Debt Payoff Calculator

Both strategies pay every debt's minimum each month. The difference is where the extra payment goes. The Snowball method targets the smallest current balance first — when you knock it out, the freed-up minimum rolls into the next-smallest balance, and so on. The motivational logic is that quick wins build momentum: clearing a small debt feels like progress and reinforces the habit.

The Avalanche method targets the highest-APR debt first. The math is straightforward: high APR generates the most interest, so retiring it first reduces the cumulative interest you pay. Avalanche always wins on total dollars saved when you stick to the plan; the question is whether you actually stick with it.

Behavioral-finance research (Kettle et al., 2014; CFPB consumer surveys) shows borrowers using Snowball are more likely to complete payoff plans because the first win arrives faster. Borrowers using Avalanche save more money on average but have higher abandonment rates. If you're confident you'll stick with the plan, Avalanche is the better choice. If you've abandoned payoff plans before, Snowball may be more durable.

Either way, the most leveraged variable is your extra monthly payment. Doubling your extra payment typically cuts your total interest by far more than switching strategy does. Run both scenarios and see — sometimes the difference is significant, sometimes it's marginal.