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Extra payment applied to smallest balance first
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Snowball vs Avalanche Comparison
Year-by-Year Breakdown
| Year | Payment | Principal | Interest | Balance |
|---|---|---|---|---|
| 11 | $100 | $3,000 | $0 | $0 |
| 26 | $150 | $5,000 | $0 | $0 |
| 33 | $250 | $8,000 | $0 | $0 |
| 36 | $350 | $12,000 | $0 | $0 |
About This Calculator
Snowball vs Avalanche: Which Debt Payoff Strategy?
The Debt Snowball method: pay minimum on all debts, then put extra money toward the smallest balance first. After paying off the smallest, roll that payment into the next smallest. This provides psychological wins that keep you motivated.
The Debt Avalanche method: pay minimum on all debts, then put extra money toward the highest interest rate first. This mathematically saves the most money on interest.
Our Recommendation
If motivation is your biggest challenge, use the snowball method for quick wins. If you want to save the most money, use the avalanche method. Either way, commit to it and stay consistent.
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method, made popular by Dave Ramsey, involves paying off your smallest debts first while making minimum payments on larger debts. As each small debt is paid off, you roll that payment into the next smallest debt.
Which is better: snowball or avalanche?
Mathematically, the avalanche method saves more money because you target high-interest debt first. However, the snowball method has a higher success rate because the quick wins boost motivation.
How long will it take to become debt-free?
With $200.00 extra per month using the snowball method, you can be debt-free in approximately 3.0 years. The avalanche method would take about 3.0 years but saves $0.00 in interest.