Compare the two most popular debt payoff strategies and see which saves you more
Quick Answer:The avalanche method (targeting highest interest first) always saves the most money. The snowball method (targeting smallest balance first) gives faster psychological wins. Enter your debts below to see the exact difference.
Interest Saved with Avalanche
Calculating... vs snowball method
Avalanche Total Interest
$0
Snowball Total Interest
$0
Avalanche Payoff Time
0 months
Snowball Payoff Time
0 months
Total Debt Balance
$0
Total Monthly Payment
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While the avalanche method is mathematically optimal, research shows that the snowball method leads to higher completion rates because of the motivational boost from paying off smaller debts quickly. Consider a hybrid approach: if your highest-rate debt is also relatively small, start with avalanche. If your highest-rate debt is your largest balance, use snowball for the first win, then switch to avalanche.
The debt avalanche method targets the debt with the highest interest rate first, minimizing total interest paid. The debt snowball method targets the smallest balance first, providing quicker psychological wins. Avalanche saves more money mathematically, while snowball can be more motivating for some people. Both methods require making minimum payments on all debts and putting extra money toward the target debt.
The debt avalanche method always saves the most money in total interest paid because it prioritizes high-interest debt first. The savings can range from a few hundred to several thousand dollars depending on your debt amounts, interest rates, and repayment timeline. However, the snowball method may keep you more motivated by eliminating individual debts faster.
Even an extra $50-200 per month can dramatically reduce your payoff timeline and total interest. The key is consistency -- any extra amount above minimum payments accelerates debt payoff. Use this calculator to see exactly how different extra payment amounts affect your total interest and payoff date with both methods.