Debt Payoff Planner: Snowball vs Avalanche

Snowball vs avalanche — what's the difference?

Both methods make minimum payments on everything and direct all extra money at one target debt. The snowball targets the smallest balance first — quick wins that keep you motivated. The avalanche targets the highest APR first — mathematically optimal, always saving the most interest.

The dollar difference is often smaller than people expect. When it's under a few hundred dollars, behavioral research suggests picking whichever you'll actually stick with; consistency beats optimization.

Making the plan work

The single most important input is the extra monthly payment — even $100 above the minimums typically cuts years off. When a debt is paid off, roll its entire payment into the next target (both strategies here do this automatically). Watch out for payments that don't cover interest on a high-APR debt: the planner flags that case because the balance would grow forever.

Frequently asked questions