Debt Payoff Calculator Snowball vs Avalanche
Enter your debts, set an extra monthly payment, and compare the snowball and avalanche strategies side by side. See your debt-free date and exactly how much interest each method saves.
Debt Payoff Calculator
Compare the snowball and avalanche methods side by side. Add your debts below to see your personalised debt-free date and total interest saved.
Your debts
See how paying more accelerates your payoff
/ month extra
Total debt: £12,700
Debt Snowball
Lowest balance first
Payoff order
Debt Avalanche
Highest rate first
Payoff order
Payoff timeline
Which method should I choose?
Debt Snowball targets your smallest balance first. Each paid-off debt creates momentum and motivation — you see wins faster. Research shows this method leads to higher completion rates for many people.
Debt Avalanche targets your highest interest rate first. This is mathematically optimal — you pay less total interest and become debt-free on the same or shorter timeline. Best if you're disciplined and motivated by numbers.
Both methods assume you make minimum payments on all other debts while focusing extra funds on your priority debt.
Snowball vs Avalanche — How Each Method Works
Debt Snowball
Pay off your smallest balance first, regardless of interest rate. When it is cleared, roll that payment into the next smallest debt. Continue until all debts are gone.
Best for: People who need psychological momentum to stay on track. Each cleared debt is a visible win that reinforces the habit.
Debt Avalanche
Pay off your highest interest rate first, regardless of balance. When it is cleared, roll that payment into the next highest-rate debt.
Best for: People focused on minimising total interest paid. This is the mathematically optimal approach — you pay less overall.
The hybrid approach
A popular strategy is to start snowball — clear one or two small debts quickly for motivation — then switch to avalanche for the remaining larger debts. This combines the psychological benefit of quick wins with the financial efficiency of targeting high interest rates.
Frequently asked questions
What is the debt snowball method?
The debt snowball method means paying off your smallest debt balance first, regardless of interest rate, while making minimum payments on all other debts. When that debt is cleared, you roll its payment into the next smallest. The psychological wins of eliminating debts completely help maintain motivation — popularised by Dave Ramsey.
What is the debt avalanche method?
The debt avalanche method means targeting the debt with the highest interest rate first, while making minimum payments on all others. Once the highest-rate debt is cleared, you move to the next highest. This is mathematically optimal — you pay less total interest compared to the snowball method — but results can take longer to feel visible.
Which method saves more money — snowball or avalanche?
The avalanche method almost always saves more money in total interest paid. However, the snowball method can be more effective for people who need psychological motivation to stay on track. If you tend to lose motivation mid-plan, the snowball's quick wins may help you actually complete the plan — making it the better choice for you personally, even if not mathematically optimal.
How do extra monthly payments affect my debt-free date?
Extra payments have a dramatic compounding effect. On a £5,000 credit card balance at 22% APR paying minimum only, you could still owe money in 20+ years. Adding just £50/month extra can cut years off your repayment and save thousands in interest. Use the extra payment slider to see the exact impact on your specific situation.
What order should I pay off my debts in?
It depends on your goal: for minimum total interest, use avalanche order (highest rate first). For fastest psychological progress, use snowball order (smallest balance first). A hybrid approach — clearing 1–2 small debts quickly for motivation, then switching to avalanche — can work well for many people.
Does making extra payments on debt really make a difference?
Yes, significantly. Because interest on most consumer debts (credit cards, personal loans) compounds monthly, even a small additional payment reduces the principal faster and means less interest accrues in future months. The effect is non-linear — a £100/month extra payment is worth far more than doubling your minimum payment by just £100 on high-interest debt.
How much interest am I paying on my credit card debt?
Credit card APRs in the UK typically range from 20% to 40% for standard cards. On a £5,000 balance at 25% APR, you are paying over £100/month in interest alone — meaning minimum payments barely reduce the balance. Use the calculator above to input your exact balances and rates to see your true interest cost.