Debt Snowball & Avalanche Calculator

Snowball vs. Avalanche: which should I pick?

Snowball attacks the smallest balances first for quick wins and motivation. Avalanche targets the highest APR first to minimize total interest. Either way, when a debt is cleared, its payment “rolls” into the next target.

How the Debt Snowball Works (Plain-English Guide)

The debt snowball is a simple, momentum-based method for paying off multiple debts. Instead of spreading extra cash across every balance, you line up your debts by balance size—from smallest to largest—pay the minimums on all of them, and focus any extra money on the smallest balance first. When that debt is gone, you roll its full payment into the next smallest balance. Every time a debt is cleared, your available payment “snowballs,” so the next payoff typically happens faster. Many people find this approach motivating because you see quick wins and fewer open accounts early in the process.

Step-by-step

1. List all debts with their balance, APR, and minimum payment.
2. Sort by smallest balance first (ignore APR for the ordering).
3. Pay minimums on every debt; put all extra money toward the smallest balance.
4. When it’s paid off, add that entire monthly payment to the next debt on the list.
5. Repeat until you’re debt-free.

Why choose Snowball over Avalanche?

Snowball emphasizes behavior and momentum. Clearing a balance early reduces decision fatigue and frees up a whole payment to redeploy. This quick feedback loop helps many people stay consistent over months or years. By contrast, the debt avalanche targets the highest APR first to minimize total interest. Avalanche is often mathematically cheaper, but some users stall because early balances can take longer to disappear. If motivation is your main hurdle, snowball can be the better tool; if minimizing interest is your top priority and you’re confident you’ll stay the course, avalanche may win.

Mini example

Suppose you have: Credit Card A (£700, 19.9% APR, £35 min), Store Card (£350, 24.9% APR, £25 min), and Car Loan (£4,000, 6.5% APR, £150 min). With £150 extra each month, snowball attacks the £350 balance first. Once that’s gone, its £25 min plus your £150 extra roll onto the £700 card. After that clears, you roll everything onto the car loan, accelerating the finish.

Tips for best results

• Automate payments the day after payday to avoid budget drift.
• Keep a small emergency buffer so surprises don’t force new debt.
• Each time a debt is cleared, resist “lifestyle creep”—roll all of that freed payment forward.
• If two balances are similar, break ties by higher APR to trim interest a bit.

Common questions

Will I pay more interest than avalanche? Sometimes, yes. Snowball optimizes for adherence and momentum; the trade-off is potentially higher interest cost. What about variable rates? Re-run the plan when rates change. Should I invest instead? Paying off high-interest consumer debt first is often a strong baseline; once you’re debt-free, redirect the “snowball” to savings and investing.

Bottom line: Pick the method you’ll follow consistently. The best plan is the one you’ll stick with until the last balance hits zero.