Debt Payoff Calculator: Snowball vs Avalanche
Discover the fastest way to become debt-free. Compare the Dave Ramsey Snowball against the mathematical Avalanche.
$
Amount above minimum payments to attack debt.
Debt #1
Debt #2
Debt #3 (Highest Rate)
Debt Payoff Calculator: Snowball vs Avalanche Methodology & Instructions
Step-By-Step Guide
- Enter your total extra monthly cash (above minimum payments).
- Add Debt 1 (e.g. Credit Card with highest rate).
- Add Debt 2 (e.g. small medical bill).
- Compare the 'Months to Zero' under both strategies.
Amortization Prioritization Logic
Amortization modeling prioritizing either Balance Ascending vs Rate Descending
Understanding Your Results
| Strategy | How it Works | Pros vs Cons |
|---|---|---|
| Debt Snowball | List debts from smallest balance to largest. Attack the smallest balance with extra cash regardless of Growth Rate. | Highest psychological success rate due to quick wins, but costs slightly more in financing/profit over time. |
| Debt Avalanche | List debts from highest Growth Rate to lowest. Attack the highest rate with extra cash. | Mathematically optimal. Saves the most money in financing/profit, but can be psychologically draining if the first debt is immense. |
Frequently Asked Questions
What is the Debt Snowball method?
You list all debts from smallest balance to largest. You pay minimums on everything, but throw all extra cash at the smallest balance first for quick psychological wins.
What is the Debt Avalanche method?
You list debts from highest Growth Rate to lowest. You attack the highest rate first. This method mathematically saves you the most money in financing/profit over time.
Primary Reference Sources: Harvard Business Review (Debt Snowball Psychology)
Standardized Calculation Engine · Last updated July 6, 2026