Which debt should I pay first?

Mathematically the highest-interest debt (avalanche). If motivation is the binding constraint, the smallest balance (snowball) is fine — for most households the strategies differ by months, not years.

Should I pay debts or build an emergency fund first?

Keep a small buffer first — one to two pay cycles of essentials — so a surprise bill does not go straight back onto the card. Then attack high-interest debt while the buffer holds.

Does the order matter if rates are similar?

Barely. Avalanche vs snowball only diverges meaningfully when rates differ a lot, like a 20% card alongside a 7% car loan. With similar rates pick whichever order you will actually stick to.

Debt payoff calculator

See how fast your debts can be gone

Enter each debt's balance, rate, and minimum repayment plus what extra you can add each month. The simulator runs the full payoff schedule for the avalanche (highest rate first) and snowball (smallest balance first) strategies side by side.

Interactive debt payoff calculator

Compare the avalanche and snowball strategies on your debts. Add an extra repayment and see the payoff date and total interest for each approach.

Your debts

Name

Balance $

Rate %

Min $/mo

Name

Balance $

Rate %

Min $/mo

Name

Balance $

Rate %

Min $/mo

Extra repayment ($/mo)

On top of minimums — rolled onto whichever debt the strategy targets first.

Avalanche wins on interest$40,500 total debt

Debt-free in 3y 9m

With $400/mo extra — saving $6,559 interest and 3y 1m vs minimums only.

Avalanche (highest rate first)

$6,059

interest · payoff 3y 9m

Order: Credit card → Personal loan → Car loan

Snowball (smallest balance first)

$6,059

interest · payoff 3y 9m

Order: Credit card → Personal loan → Car loan

Minimums only

Paying just the minimums takes 6y 10m and costs $12,618 in interest. The avalanche always costs the least interest; the snowball clears an account sooner, which many households find easier to stick with.

Estimate only — assumes fixed rates and monthly compounding.

Month-by-month payoff simulation for up to three debts

Avalanche vs snowball compared on interest and time

Extra repayment impact — interest and months saved

Avalanche wins on maths, snowball wins on behaviour

The avalanche strategy directs every spare dollar to the highest-interest debt, which is always the cheapest path on paper. The snowball targets the smallest balance first — it costs slightly more interest but clears an account quickly, and the early win keeps many people paying. The calculator shows the exact dollar difference for your debts so the trade-off is concrete, not theoretical.

Extra repayments compound through the order

Every debt you clear frees its minimum repayment, which rolls onto the next target. A $400/month extra payment on top of minimums does not just save $400 of principal — it accelerates the whole schedule, so the interest saving is usually several times the sum of the extra payments on high-rate debt.

What this model assumes

Rates are fixed, interest compounds monthly, and minimum repayments stay constant — real credit card minimums shrink as the balance falls, which stretches the payoff further than shown. If your minimum is a percentage of balance, treat the estimate as optimistic and add it to your extra repayment column mentally.

Frequently asked questions

Which debt should I pay first?: Mathematically the highest-interest debt (avalanche). If motivation is the binding constraint, the smallest balance (snowball) is fine — for most households the strategies differ by months, not years.
Should I pay debts or build an emergency fund first?: Keep a small buffer first — one to two pay cycles of essentials — so a surprise bill does not go straight back onto the card. Then attack high-interest debt while the buffer holds.
Does the order matter if rates are similar?: Barely. Avalanche vs snowball only diverges meaningfully when rates differ a lot, like a 20% card alongside a 7% car loan. With similar rates pick whichever order you will actually stick to.

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