Snowball or avalanche
Both pay the minimum on every debt each month and put everything else towards one debt at a time. When that one is cleared, its payment rolls on to the next, so the amount aimed at your debts grows.
- Avalanche: the highest interest rate first. It always costs the least interest.
- Snowball: the smallest balance first. It clears a whole debt sooner, and that early win keeps many people going.
An example
Three debts, 600 a month in total (worked out by this calculator): a credit card of 3,000 at 22.9% (minimum 90), a car loan of 8,000 at 6.9% (minimum 220) and a store card of 600 at 17.9% (minimum 25).
| Method | Debt-free in | Total interest | Order |
|---|---|---|---|
| Avalanche | 1 year 10 months | 1,021.10 | Credit card, Store card, Car loan |
| Snowball | 1 year 10 months | 1,042.83 | Store card, Credit card, Car loan |
Here the avalanche saves 21.73; the snowball clears the store card first.
How it’s worked out
Each month every debt is charged a twelfth of its yearly rate on its balance, gets its minimum payment, and the rest of your monthly amount goes to the target debt. If your monthly amount is less than the minimums added up, the calculator says by how much.
How to read the result
- Debt-free: how long until every debt is paid at your monthly total, by the plan you picked.
- The two cards: the snowball and avalanche side by side, with the order each clears your debts.
- The verdict: what one costs against the other.
Common mistakes
- A monthly total below the minimums added up: the calculator says how much more is needed.
- Using new credit while paying off: the plan assumes the debts don’t grow.
- Leaving out a debt because it’s small: the snowball works best with all of them.
How to use it
- Add each debt with its balance, yearly interest rate and minimum monthly payment.
- Type the total you can pay each month, at least the minimums added up.
- Compare the two plans, then pick one to see its month-by-month schedule, copy it or open it as a spreadsheet.
Questions
Which is better, snowball or avalanche?
The avalanche costs less interest, always. The snowball can cost a little more but pays off a first debt sooner. The best plan is the one you’ll stick to: the calculator shows exactly what the difference costs.
What if I can only afford the minimums?
Type the minimums added up as your monthly amount to see when that gets you clear. If a debt’s interest is more than its minimum payment, it is never paid off, and the calculator warns you.
Are my debts saved anywhere?
Only in this browser, so you can come back and update them. Nothing is sent anywhere.
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Elsewhere on Yuzool
- How to make a budget Budget’s guide
- Budget to find more each month
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