More than one debt · Side-by-side plans
Snowball vs avalanche: which pays off debt faster?
Short answer
In this example the avalanche saves about $233 in interest. The snowball pays off its first debt in month 5, against month 13 for the avalanche.
Both are debt-free in October 2028.
Both methods pay every minimum and put the extra money on one debt at a time. The avalanche picks the highest rate; the snowball picks the smallest balance. Here, $17,800 across four debts gets $900 a month, which is $328 above the minimums.
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Card A | $1,500 | 19.99% | $40 |
| Card B | $5,200 | 27.49% | $171 |
| Card C | $3,100 | 23.99% | $93 |
| Personal loan | $8,000 | 12.55% | $268 |
| Total | $17,800 | $572 |
Bars drawn to scale. Minimums are held fixed, there are no new charges, and the first payment is next month.
The order each plan pays them off
Avalanche (highest rate first):
- Card B paid off in November 2027
- Card C paid off in March 2028
- Card A paid off in May 2028
- Personal loan paid off in October 2028
Snowball (smallest balance first):
- Card A paid off in March 2027
- Card C paid off in October 2027
- Card B paid off in June 2028
- Personal loan paid off in October 2028
Try one of your own debts
Which one should you use?
The avalanche always costs the least interest, because every extra dollar goes where it's charged the most. It suits people who stick with a plan even when the first payoff is months away.
The snowball costs a little more but gives an early win: a debt gone in month 5. If seeing balances disappear is what keeps you going, that can be worth the difference.
Either beats minimums only, which would take 5 years and cost $8,377 in interest.
When the gap gets bigger
The difference grows when the smallest debt has the lowest rate and a large debt has the highest. When the smallest balance also has the highest rate, the two methods are the same plan.
Have more than one debt?
Add your cards, loans and mortgage to see one debt-free date for all of it, and which to pay first.
Common questions
Is the snowball method a bad idea?
No. It costs $233 more here, and it finishes on a similar date. The best plan is the one you keep following.
Can I mix the two?
Yes. A common mix: clear one small balance first for momentum, then switch to the highest rate.
How this payoff estimate is calculated
The strategy plans use a total monthly budget of $900 across the debts listed above. Minimum payments stay fixed. Extra money and payments freed by a cleared debt are applied to the remaining debts in the selected order. The minimums-only comparison does not roll freed payments forward.
Each month, interest is calculated as the opening balance × APR ÷ 100 ÷ 12, then the payment is subtracted. This repeats until the balance is paid off. Total interest is the sum of those monthly charges; displayed dollar amounts are rounded.
Dates assume the first payment is in November 2026. Dates move forward with the calendar; this does not change the number of payments for the same inputs. There are no new charges, fees or rate changes in these examples. Rates are illustrative inputs, not loan offers or a quote for your account.
Actual statements can differ because of payment timing and daily interest. The CFPB explains how credit card companies calculate interest. See our debt payoff glossary for definitions.
Written and reviewed by Todd K. Ballenger. Read our editorial policy.
Educational estimate only, not financial advice. Interest here is charged monthly at APR ÷ 12; card issuers use your average daily balance, and real fees, rate changes and new charges will change your numbers. Disclaimer.