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10 April 2025 · 4 min read

Snowball vs Avalanche: Which Debt Payoff Method Wins?

Two strategies, two very different psychologies. Here's the maths and the mindset behind each.

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The avalanche method

Pay the minimum on every debt except the one with the highest APR — throw everything spare at that one. When it's gone, roll those payments into the next-highest APR debt. Mathematically optimal: minimum interest paid, fastest debt-free date.

The snowball method

Same idea, but you attack the smallest balance first regardless of APR. You'll pay slightly more interest overall, but you get a 'win' much sooner — which research suggests dramatically increases the chances you stick with it.

Which should you choose?

If your debts are within ~5% APR of each other, the difference is tiny — go snowball for motivation. If one debt has a much higher rate (e.g. a 30% APR store card next to a 6% loan), the avalanche saves enough to be worth the patience.

Try the tool
Debt Payoff Calculator

Enter your current balance, APR and monthly payment to see how long it will take to clear and how much interest you'll pay along the way.

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