A worked example
With three debts — a $3,000 card at 24%, an $8,000 card at 18%, and a $5,000 loan at 10% — plus $200 extra a month, both strategies clear everything in 3 years. Avalanche costs about $3,967 in interest versus snowball's $4,334 — a $367 difference for the same payoff speed.
Frequently asked questions
Why does avalanche usually save more money?
It targets the highest-rate debt first, which is where money is leaking out fastest — paying that down sooner means less total interest accrues across the whole payoff period, regardless of balance size.
Then why would anyone choose snowball?
Behavioral momentum — clearing a small balance quickly creates an early win that keeps many people motivated to stick with the plan. The 'best' method mathematically isn't always the one someone will actually follow through on.
What does 'rolling the payment forward' mean?
Once a debt is fully paid off, its minimum payment doesn't disappear — it gets added to the extra payment going toward the next debt in line, which is what makes both strategies accelerate over time.
This calculator provides estimates for general informational purposes only and is not financial advice.