Snowball or avalanche: which is better?
The avalanche method puts every extra dollar on the debt with the highest interest rate. It almost always costs the least interest. The snowball method pays off the smallest balance first. It usually costs a bit more, but quick wins keep many people motivated.
Both need the same thing: pay every minimum, add whatever extra you can, and when one debt is gone, roll its payment into the next. This calculator does that rollover for you.
Results assume fixed rates and no new charges. Real card statements calculate interest daily, so expect small differences.
Questions
How is the payoff date calculated?
Each month interest is added at APR/12, every minimum is paid, and the extra payment goes to the target debt. Paid-off minimums roll into the next debt.
Does snowball or avalanche save more money?
Avalanche usually saves more interest. Snowball can be easier to stick with because small debts disappear quickly.
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