Debt Snowball vs. Avalanche: Which Saves You More?
A side-by-side comparison of the debt snowball and avalanche payoff methods, with a worked example showing exactly how much each one costs in time and interest.
Both the snowball and avalanche methods pay off debt using the exact same total monthly budget — the only difference is which single debt gets the extra money first.
| Avalanche | Snowball | |
|---|---|---|
| Payoff order | Highest interest rate first | Smallest balance first |
| Optimizes for | Minimum total interest paid | Early, visible wins |
| Best fit when | You're motivated by the math alone | You need momentum to stay consistent |
Worked example
A $10,000 balance at 26% APR and a $1,500 balance at 6% APR, with $200 extra paid per month: avalanche pays both off in 31 months for $3,886 in total interest. Snowball pays off the smaller balance first for an early win, but takes 32 months and $4,318 in interest — about $432 more, because the large high-interest balance keeps accruing interest a little longer before getting full priority.
Why the numerical winner isn't always the right choice
Avalanche is mathematically optimal in nearly every case, but personal finance research and behavioral studies consistently find that people who use snowball are more likely to actually finish paying off all their debt, because the early wins build confidence and momentum. If you're confident you'll stick with a plan either way, avalanche saves more money. If you've abandoned debt payoff plans before, snowball's early wins might matter more than the extra interest cost.
Enter your own debts into the Debt Payoff Calculator to see both methods side by side with your real numbers.