Debt Snowball vs. Avalanche: Two Worked Comparisons
Avalanche directs extra money to the highest APR; snowball directs it to the smallest balance. The useful question is how much that choice changes your plan. These two examples compare the same budget under both methods.
Example 1: the smallest debt has a lower APR
| Debt | Balance | APR | Fixed monthly minimum |
|---|---|---|---|
| Card A | $4,200.00 | 24.99% | $105.00 |
| Card B | $3,600.00 | 21.49% | $90.00 |
| Car loan | $8,200.00 | 7.2% | $215.00 |
Add $150 each month to the $410 in fixed minimums. Keep the resulting $560 total budget throughout repayment, redirecting freed payments as accounts reach zero. The car loan is included only as a fixed-rate mathematical example; contract terms and the consequences of missing a secured payment require separate consideration.
Example assumptions: U.S. dollars, fixed APR, monthly interest on the opening balance rounded to cents, end-of-month payments, no fees or new charges. The final payment can be smaller. Estimates are not issuer payoff quotes. See our calculation methodology.
| Result | Snowball | Avalanche |
|---|---|---|
| Months to finish | 36 | 35 |
| Total interest | $3,755.77 | $3,563.18 |
| Total repaid | $19,755.77 | $19,563.18 |
| First account paid off | Card B, month 18 | Card A, month 21 |
Here, avalanche costs $192.59 less in interest and ends one month sooner. Snowball finishes its first account three months earlier. These are results for these inputs, not average savings for all borrowers.
Example 2: both methods choose the same order
| Debt | Balance | APR | Fixed monthly minimum |
|---|---|---|---|
| Card A | $1,000.00 | 24% | $50.00 |
| Card B | $4,000.00 | 12% | $100.00 |
With $100 extra, the total budget is $250. The $1,000 card has both the smallest balance and the highest APR. Both methods finish in 23 months and charge $658.03 in modeled interest. In this case, changing the method provides no savings.
Compare your own trade-off
- Keep the same balances, APRs, fixed minimums and extra payment in both runs.
- Compare total interest, final month and the first account’s payoff month.
- Decide whether an earlier milestone is worth any additional modeled cost to you.
- Recalculate if the budget or rates change. Do not compare a $400 snowball plan with a $600 avalanche plan and attribute the entire difference to ordering.
The CFPB worksheet gives the basic rationale for each method. It does not supply a universal percentage saving or a guarantee that a borrower will complete a plan.
Open the snowball and avalanche calculator to reproduce these inputs. For the ongoing monthly routine, use the debt repayment planning guide.
Sources and method
Educational content for U.S. consumers. Numerical examples are our own calculations under the stated assumptions. Methodology and limitations.