Efficiency Sheets
Simple Sheets
Debt Payoff Calculator: Snowball vs Avalanche
Enter your debts and what you can pay each month. See your debt-free date, total interest, and which debt to pay first with the snowball and avalanche methods.
Avalanche: debt-free
1 yr 2 mo
– · $751 interest
Snowball: debt-free
1 yr 2 mo
– · $982 interest
Minimums only
3 yr 11 mo
$3,431 interest
Paying $400 extra a month saves $2,680 in interest and 2 yr 9 mo compared with minimums only.
Snowball order
- 1. Store cardpaid off in 3 mo
- 2. Personal loanpaid off in 7 mo
- 3. Credit cardpaid off in 1 yr 2 mo
Avalanche order
- 1. Credit cardpaid off in 10 mo
- 2. Store cardpaid off in 11 mo
- 3. Personal loanpaid off in 1 yr 2 mo
How it is worked out
- Every month, interest is added to each balance at its APR divided by 12.
- Every debt gets its minimum payment. Everything left over goes to one target debt.
- Snowball targets the smallest balance first. Avalanche targets the highest interest rate first.
- When a debt is paid off, its minimum rolls into the next target.
Questions
Is snowball or avalanche better?
Avalanche always costs the same or less in interest. Snowball pays off individual debts sooner, which keeps many people going. The best one is the one you stick with.
Why does it say a debt will never be paid off?
The payment doesn't cover the monthly interest, so the balance can't go down. Raise the monthly amount.
Should I include my mortgage?
Usually not. Most people use these methods for credit cards, personal loans, car loans and student loans.
