Debt avalanche vs snowball calculator
Type your debts in the same order in the three lists. We compare both methods with the same budget: you choose the one that suits you.
Result
56.07Extra interest with the snowball
- Avalanche: interest paid
- 920.01
- Avalanche: months to pay it all
- 22
- Avalanche: 1st debt cleared in month
- 9
- Avalanche: order (debt no.)
- 1 → 3 → 2
- Snowball: interest paid
- 976.08
- Snowball: months to pay it all
- 22
- Snowball: 1st debt cleared in month
- 5
- Snowball: order (debt no.)
- 3 → 1 → 2
Inputs
- Amounts owed
- 2500; 6000; 1200
- Rate per year of each debt
- 21.9; 7.5; 15
- Minimum payments per month
- 75; 150; 35
- Total budget per month
- 500
How it is calculated
Each month: interest on each debt, then each debt’s minimum, then the rest of the budget goes to one target debt.
Result
Extra interest with the snowball
- Avalanche: interest paid
- 920.01
- Avalanche: months to pay it all
- 22
- Avalanche: 1st debt cleared in month
- 9
How it is calculated
- Each month: interest on each debt, then each debt’s minimum, then the rest of the budget goes to one target debt.
- Avalanche: the target is the debt with the highest rate. It usually lowers the interest.
- Snowball: the target is the smallest debt. It often clears a first debt sooner, which keeps some people motivated.
- When a debt is cleared, its minimum goes to the next target (the budget stays the same).
Example
Debts 2,500 (21.9%), 6,000 (7.5%) and 1,200 (15%), budget 500 a month: avalanche 920.01 of interest, snowball 976.08, a gap of 56.07; the snowball clears a 1st debt in month 5 instead of 9.
Good to know
- Fixed rates and no new purchases.
- No method is imposed: the right choice also depends on your motivation.
Frequently asked questions
What is this tool used for?
Type your debts in the same order in the three lists. We compare both methods with the same budget: you choose the one that suits you.
How is the result calculated?
Each month: interest on each debt, then each debt’s minimum, then the rest of the budget goes to one target debt.
What should I check before using the result?
Fixed rates and no new purchases.