1. What is Snowball vs Avalanche?

The snowball method pays off debts from smallest to largest balance, while the avalanche method pays debts from highest to lowest interest rate. This calculator compares how long each method would take to pay off all your debts.

2. How Does the Calculator Work?

The calculator simulates both payoff methods month-by-month:

• For each month, minimum payments are made on all debts
• Extra payment is applied to the target debt (smallest balance for snowball, highest rate for avalanche)
• The process continues until all debts are paid off

3. Comparing the Methods

Snowball Advantages: Psychological wins from paying off small debts quickly, may keep you motivated

Avalanche Advantages: Mathematically optimal - pays less interest overall and typically faster

4. Using the Calculator

Tips: Enter each debt on a new line with balance, interest rate, and minimum payment. The more accurate your inputs, the more accurate the results.

5. Frequently Asked Questions (FAQ)

Q1: Which method is better?
A: Avalanche saves more money, but snowball may work better if you need motivation from quick wins.

Q2: Why does snowball sometimes take longer?
A: If you have small debts with low rates, snowball may keep you paying high interest longer.

Q3: Should I include my mortgage?
A: Typically no - focus on consumer debts (credit cards, personal loans, etc.).

Q4: What if I can increase my payments?
A: Higher payments reduce payoff time for both methods - try different amounts to see the impact.

Q5: Are there other debt payoff methods?
A: Yes, like debt consolidation or balance transfers, but these require good credit and discipline.