Snowball vs. Avalanche: Which is Right for You?
Getting out of debt is as much a mental game as it is a math problem. Our 2026 Debt Payoff Calculator lets you compare both strategies side-by-side to find your optimal path to financial freedom.
Strategy Breakdown
- Snowball (Psychology): You tackle the $500/₹20k credit card bill before the larger loans. Eliminating entire accounts quickly gives you the motivation to keep going.
- Avalanche (Math): You tackle the 20% APR card before the 6% student loan. This minimizes the "interest penalty" ensuring you pay the least total amount to lenders.
How to use?
- List Your Debts: Enter name, balance, interest rate, and minimum payment for each liability.
- Set Budget: How much TOTAL can you afford to pay monthly? needs to be more than the minimums combined.
- Compare: Toggle between strategies to see the difference in "Interest Paid" and "Debt Free Date".
Frequently Asked Questions
What is the Snowball Method?
The Debt Snowball method involves paying off your smallest debts first to build momentum, regardless of the interest rate. It provides psychological 'quick wins'.
What is the Avalanche Method?
The Debt Avalanche method focuses on paying off debts with the highest interest rates first. This mathematically saves you the most money over time.
Can I edit my debts in this tool?
Yes! You can add, edit, or remove debts in the calculator above. The tool will instantly recalculate your payoff timeline based on your new list.
Disclaimer: This tool is for educational purposes only and does not constitute professional financial advice. Results are estimates based on the information provided. Please consult a qualified financial advisor before making important financial decisions.