Debt Snowball vs. High Rate (Avalanche) Calculator
Compare the two most popular debt payoff strategies to see which saves you more money and time.
This is the total amount you can afford to pay towards your debts each month.
Debt #1
Debt #2
Debt #3
Debt #4
❄️ Debt Snowball
Focus: Lowest Balance First
0 Months
Time to Debt Free
$0.00
Total Interest Paid
🌋 High Rate (Avalanche)
Focus: Highest Interest First
0 Months
Time to Debt Free
$0.00
Total Interest Paid
Understanding High Rate vs. Debt Snowball
When creating a plan to eliminate debt, the two most effective strategies are the Debt Snowball and the High Rate (Avalanche) methods. While both aim to get you to debt freedom, they approach the problem from different psychological and mathematical angles.
What is the Debt Snowball?
The Debt Snowball method prioritizes momentum. You list your debts from the smallest balance to the largest balance, ignoring interest rates. You pay minimums on everything except the smallest debt, attacking it with every extra dollar. Once paid off, you roll that payment into the next smallest debt.
Pros: Quick wins boost motivation early on. It helps build a habit of debt repayment.
Cons: Usually costs more in interest over time compared to the Avalanche method.
What is the High Rate (Avalanche) Method?
The High Rate method, often called the Debt Avalanche, prioritizes mathematical efficiency. You list your debts from the highest interest rate to the lowest. You attack the debt with the highest rate first.
Pros: Mathematically superior—you pay less total interest and usually get out of debt slightly faster.
Cons: Takes longer to see the first debt completely disappear, which can test your discipline.
Comparison: Snowball vs. Avalanche
Feature
Debt Snowball
High Rate (Avalanche)
Sorting Method
Smallest Balance First
Highest Interest Rate First
Psychological Benefit
High (Quick Wins)
Moderate (Long-term savings)
Total Interest Paid
Higher
Lower (Optimal)
Best For
People needing motivation
People driven by numbers
How to Use This Calculator
Enter Total Budget: Input the total amount of money you have available every month to pay towards debt. This must be higher than the sum of your minimum payments.
Input Debt Details: For up to 4 debts, enter the current balance, the annual interest rate (APR), and the minimum monthly payment required.
Compare: Click the button to see the simulation results. We calculate the timeline month-by-month for both strategies to show exactly how much interest and time you save with each.
function calculateStrategies() {
// Clear previous errors
var errorDisplay = document.getElementById("errorDisplay");
errorDisplay.style.display = "none";
errorDisplay.innerHTML = "";
// Get Budget
var budgetInput = document.getElementById("monthlyBudget").value;
var totalBudget = parseFloat(budgetInput);
if (isNaN(totalBudget) || totalBudget <= 0) {
errorDisplay.innerHTML = "Please enter a valid monthly repayment budget greater than 0.";
errorDisplay.style.display = "block";
return;
}
// Gather Debts
var debts = [];
var totalMinPayment = 0;
for (var i = 1; i 0) {
var r = isNaN(rate) ? 0 : rate;
var m = isNaN(min) ? 0 : min;
debts.push({
id: i,
balance: bal,
rate: r,
min: m,
originalBalance: bal // snapshot
});
totalMinPayment += m;
}
}
if (debts.length === 0) {
errorDisplay.innerHTML = "Please enter at least one debt with a valid balance.";
errorDisplay.style.display = "block";
return;
}
if (totalBudget < totalMinPayment) {
errorDisplay.innerHTML = "Your total budget ($" + totalBudget + ") is less than the sum of your minimum payments ($" + totalMinPayment + "). Please increase your budget.";
errorDisplay.style.display = "block";
return;
}
// Logic for Snowball (Sort by Balance Ascending)
// Deep copy debts for simulation
var snowballDebts = JSON.parse(JSON.stringify(debts));
snowballDebts.sort(function(a, b) { return a.balance – b.balance; });
var snowballResult = simulatePayoff(snowballDebts, totalBudget);
// Logic for Avalanche (Sort by Rate Descending)
var avalancheDebts = JSON.parse(JSON.stringify(debts));
avalancheDebts.sort(function(a, b) { return b.rate – a.rate; });
var avalancheResult = simulatePayoff(avalancheDebts, totalBudget);
// Display Results
document.getElementById("snowballTime").innerText = formatMonths(snowballResult.months);
document.getElementById("snowballInterest").innerText = formatCurrency(snowballResult.totalInterest);
document.getElementById("avalancheTime").innerText = formatMonths(avalancheResult.months);
document.getElementById("avalancheInterest").innerText = formatCurrency(avalancheResult.totalInterest);
// Summary Logic
var interestDiff = snowballResult.totalInterest – avalancheResult.totalInterest;
var timeDiff = snowballResult.months – avalancheResult.months;
var summaryHtml = "
Verdict
";
if (Math.abs(interestDiff) < 1 && Math.abs(timeDiff) < 1) {
summaryHtml += "Both strategies yield nearly identical results for your specific debts.";
} else {
summaryHtml += "The High Rate (Avalanche) method saves you " + formatCurrency(Math.max(0, interestDiff)) + " in interest compared to the Snowball method.";
if (timeDiff > 0) {
summaryHtml += "It will also get you debt-free " + timeDiff + " month(s) sooner.";
} else if (timeDiff === 0) {
summaryHtml += "Both methods will take the same amount of time.";
}
}
document.getElementById("comparisonSummary").innerHTML = summaryHtml;
document.getElementById("resultsArea").style.display = "grid";
}
function simulatePayoff(debtList, monthlyBudget) {
var months = 0;
var totalInterestPaid = 0;
var currentDebts = debtList; // Working copy
// Safety break
var maxMonths = 1200; // 100 years cap
while (currentDebts.length > 0 && months < maxMonths) {
months++;
var availableBudget = monthlyBudget;
// 1. Accrue Interest & Pay Minimums
// We need to calculate interest for all debts first before paying anything
// effectively assuming interest accrues on the monthly opening balance
var debtsToRemove = [];
// Calculate Interest Phase
for (var i = 0; i < currentDebts.length; i++) {
var d = currentDebts[i];
var monthlyRate = d.rate / 100 / 12;
var interest = d.balance * monthlyRate;
d.balance += interest;
totalInterestPaid += interest;
}
// Payment Phase – Minimums
for (var i = 0; i < currentDebts.length; i++) {
var d = currentDebts[i];
var pay = d.min;
if (availableBudget = d.balance) {
pay = d.balance;
d.balance = 0;
} else {
d.balance -= pay;
}
availableBudget -= pay;
}
// Payment Phase – Extra (Snowball/Avalanche target is index 0 due to sorting)
// Loop through debts in sorted order to apply extra
for (var i = 0; i < currentDebts.length; i++) {
if (availableBudget 0) {
var pay = availableBudget;
if (pay >= d.balance) {
pay = d.balance;
d.balance = 0;
availableBudget -= pay;
// Continue loop to apply remaining budget to next debt
} else {
d.balance -= pay;
availableBudget = 0;
}
}
}
// Cleanup paid debts
for (var i = currentDebts.length – 1; i >= 0; i–) {
if (currentDebts[i].balance 0) {
return years + " yr " + months + " mo";
}
return months + " mo";
}