Your Debts
Add all debts to compare strategies accurately| Debt Name | Balance ($) | APR (%) | Min. Payment ($) | |
|---|---|---|---|---|
Extra Monthly PaymentAbove minimum payments — how much extra can you throw at debt?
$
/month
▲ Avalanche Method
—Total Interest Paid
—Months to Debt-Free
—
➃ Snowball Method
—Total Interest Paid
—Months to Debt-Free
—
💡 Hybrid approach: Start with snowball to knock out your smallest debt fast (motivation win), then switch to avalanche for the remaining debts to minimize interest. This is often the best of both worlds.
⚠ Note: Calculations assume fixed APRs, consistent monthly payments, and no new charges added to debts. Actual results depend on rate changes, missed payments, and payment timing. This is a planning tool, not financial advice.
Frequently Asked Questions
Pay minimums on all debts. Put all extra money toward the highest-interest debt first. When that's paid off, roll its payment to the next highest rate. Mathematically optimal — always saves the most total interest. Best for people motivated by numbers and long-term efficiency.
Pay minimums on all debts. Put all extra money toward the smallest balance first. When that's paid off, roll its payment to the next smallest. Psychologically effective — the early win of paying off a debt completely provides motivation to keep going. Research shows people using snowball are more likely to actually complete their debt payoff.
Avalanche always saves more money. Snowball keeps more people on track. The best method is whichever you'll actually stick with for years. If you're disciplined and numbers-driven: avalanche. If you need early wins to stay motivated: snowball. The hybrid approach — start snowball, switch to avalanche — is often the practical winner.
The crossover point is the month where avalanche's cumulative interest savings definitively surpass snowball's advantages. Before the crossover, snowball may have paid off more debts (more wins). After the crossover, avalanche is unambiguously ahead on total cost. Some people start with snowball until the crossover, then switch to avalanche.
When you finish paying off a debt, instead of spending that freed-up payment on something else, you roll it into your extra payment for the next target debt. For example: if you were paying $200/month on Debt A and it's now gone, that $200 gets added to your payment on Debt B. This is the core mechanic that accelerates payoff — the momentum builds as each debt is eliminated.
The average credit card APR in 2026 is approximately 21.5% (Federal Reserve data). Rates range from 18-30% for most cards, with store cards often running 28-30%. If you carry balances, any card below 19% is below-average rate. Balance transfer cards with 0% introductory periods (typically 12-21 months) can dramatically accelerate payoff — use one in combination with either method.
If your debt interest rate exceeds your expected investment return, pay off debt first. Credit card debt at 20%+ APR is almost always worth eliminating before investing — paying it off is equivalent to a guaranteed 20% return. Always capture employer 401k match first (it's a 50-100% immediate return). For low-interest debt under 5%, investing often wins long-term.
Debt avalanche: pay off your highest-interest-rate debt first while making minimums on everything else — minimizes total interest, fastest in pure dollar terms. Debt snowball: pay off your smallest-balance debt first regardless of rate — costs slightly more in interest but provides faster psychological wins. Avalanche wins on math; snowball often wins on follow-through. The best method is whichever you will actually stick with. This calculator shows the exact dollar and time difference for your specific debts.
Even a modest extra payment has an outsized effect because it directly reduces the principal future interest compounds on. On an $8,500 balance at 22% APR with a $250/month payment, adding $50-100/month extra can cut a year or more off your timeline and save hundreds to over a thousand dollars in interest. Early extra payments are worth significantly more than late ones due to compounding. Use the calculator above to see your exact savings number.
The average credit card APR for accounts accruing interest in 2026 is approximately 22.36% (Federal Reserve G.19 data, Q3 2026). New card offer rates average around 23.96%. Rates range from 18% for prime cardholders to 29.99% for subprime. Store cards typically run 27-29%. Balance transfer cards with 0% introductory rates (12-21 months) remain the most powerful debt payoff tool for qualified borrowers.
2025-26 federal student loan rates: Undergraduate Direct Loans: 6.39%. Graduate Direct Loans: 7.94%. PLUS Loans (parent and grad): 8.94%. These rates reset annually on July 1. Private student loan rates vary widely (5-14%+) based on creditworthiness. If you have multiple student loans at different rates, the avalanche method (targeting the highest-rate loan first) can save significant interest over time.
The crossover point is the month when avalanche cumulative interest savings definitively surpass any snowball advantages. Before the crossover, snowball may have paid off more debts completely. After the crossover, avalanche is unambiguously winning on total cost. Many financial experts recommend starting with snowball for the first debt win, then switching to avalanche. This hybrid approach is shown in the tip box after you calculate your plan.