Debt snowball vs. avalanche: which pays off debt faster?
If you pay the same total amount each month, the avalanche method (highest interest rate first) usually gets you debt-free in the same month as the snowball method (smallest balance first) or a little earlier, and it always costs the same or less interest. In the worked example below, both finish in month 26, and avalanche saves $205.92. Snowball gives you more early wins, and that is its real advantage.
The two methods in one sentence each
Snowball: pay the minimum on everything, put every extra dollar on the smallest balance, and when it is gone, roll its payment into the next smallest. Avalanche: the same, but you target the highest interest rate first. Both keep your total monthly payment fixed, so the only thing that changes is the order.
Worked example: four debts, $660 a month
Assumptions: interest is charged monthly at APR ÷ 12 on the balance and rounded to the cent; each minimum stays at the amount shown (when a lender lowers your minimum, you keep paying the old amount); no new charges; total payment is $660 a month ($460 of minimums plus $200 extra).
| Debt | Balance | APR | Minimum | Snowball: paid off in month | Avalanche: paid off in month |
|---|---|---|---|---|---|
| Store card | $900 | 26% | $35 | 5 | 5 |
| Credit card | $4,200 | 22% | $120 | 22 | 17 |
| Personal loan | $3,000 | 12% | $95 | 13 | 21 |
| Car loan | $6,500 | 7% | $210 | 26 | 26 |
| Result | Snowball | Avalanche | Minimums only, no rollover |
|---|---|---|---|
| Months to debt-free | 26 | 26 | 57 |
| Total interest | $2,167.88 | $1,961.96 | $4,321.95 |
| Total paid | $16,767.88 | $16,561.96 | $18,921.95 |
Why the finish line is the same: both methods pay off the $900 store card first (it is both the smallest and the most expensive), and after that the only difference is which of two mid-sized debts gets the extra money, so the total balance falls at almost the same speed. The difference is in the middle: snowball kills the personal loan in month 13, while avalanche lets it sit and attacks the 22% card. That order costs snowball $205.92 more. Either way, rolling payments forward saves more than $2,000 in interest and 31 months compared with paying only the minimums.
Month-by-month total balance (end of month, after payment)
| Month | Snowball | Avalanche |
|---|---|---|
| 1 | $14,104.42 | $14,104.42 |
| 2 | $13,601.72 | $13,601.72 |
| 3 | $13,091.78 | $13,091.78 |
| 4 | $12,574.48 | $12,574.48 |
| 5 | $12,049.68 | $12,049.68 |
| 6 | $11,519.86 | $11,517.98 |
| 7 | $10,985.10 | $10,979.32 |
| 8 | $10,445.33 | $10,433.59 |
| 9 | $9,900.49 | $9,880.67 |
| 10 | $9,350.54 | $9,320.46 |
| 11 | $8,795.43 | $8,752.84 |
| 12 | $8,235.10 | $8,177.69 |
| 13 | $7,669.50 | $7,594.90 |
| 14 | $7,097.82 | $7,004.33 |
| 15 | $6,517.98 | $6,405.87 |
| 16 | $5,929.84 | $5,799.40 |
| 17 | $5,333.26 | $5,184.78 |
| 18 | $4,728.11 | $4,562.32 |
| 19 | $4,114.24 | $3,934.42 |
| 20 | $3,491.51 | $3,301.04 |
| 21 | $2,859.76 | $2,662.13 |
| 22 | $2,218.85 | $2,017.66 |
| 23 | $1,571.79 | $1,369.43 |
| 24 | $920.96 | $717.42 |
| 25 | $266.33 | $61.60 |
| 26 | $0.00 | $0.00 |
Compare both methods with your own debts
Enter up to four debts. Leave unused rows at 0.
| Balance ($) | APR (%) | Minimum ($) |
|---|---|---|
What most comparisons leave out
- "Faster" depends on what you hold fixed. With the same total payment, avalanche finishes in the same month or earlier in practically every real case. Snowball is only "faster" at clearing the first account, which is a motivation win, not a money win.
- The gap is small when rates are close. If all your debts are between 20% and 25%, the two orders cost almost the same. The gap grows when a large balance carries the highest rate.
- Often the first target is the same. If your smallest debt also has the highest rate, both methods start identically. Check this before you agonise over the choice.
- Small wins are measurable. A Kellogg School of Management study of about 6,000 debt-settlement clients found that the number of accounts people closed predicted who finished the program better than the dollar amount they had paid off (Kellogg Insight; Gal & McShane, 2012).
Common mistakes
- Letting the payment shrink. Card minimums fall as the balance falls. If you pay the new, lower minimum, your total payment drops and both methods slow down. Keep the original amount.
- Not rolling freed-up payments forward. The $35 from the store card must go to the next debt in month 6, not back into your spending.
- Adding new charges. Neither method works if the card you are paying off is still in use.
- Using the wrong rate. Use the APR on your latest statement, including any promotional rate that is about to end.
Follow-up questions
Can I mix the two? Yes. A common hybrid is to clear one or two tiny balances first for momentum, then switch to highest rate. Our calculator lets you test both orders before you decide.
What about a 0% balance transfer card? Treat it as 0% until the promotion ends, then at its regular APR. Plan to clear it before the end date, and count the transfer fee as a cost.
Only credit cards? We walk through a three-card plan step by step, with a calculator for exactly three cards: How to pay off 3 credit cards with the snowball method.
Sources: Kellogg Insight, "To Beat Debt, Consider Starting Small" (2014); D. Gal and B. McShane, "Can Small Victories Help Win the War? Evidence from Consumer Debt Management", Journal of Marketing Research (2012). Example figures are our own calculation using the assumptions stated above.
General information, not financial advice.
Disclosure: Still Penny makes the Debt Payoff Planner, an offline browser app where you enter your debts once and see the debt-free month, total interest and the month each debt is gone for both snowball and avalanche, side by side. It costs 12.90 EUR as a one-time download on Etsy: Still Penny Debt Payoff Planner on Etsy. It is optional; the calculator above is free and does the core comparison.