Debt Snowball vs. Avalanche: Which Payoff Strategy Fits?
The debt avalanche prioritizes the highest interest rate; the debt snowball prioritizes the smallest balance. They optimize different things.
Change the inputs and compare scenarios with the related RetirementMetric calculator.
Open the calculatorAvalanche method
Pay minimums on every debt and send extra cash to the highest APR. Mathematically, this generally minimizes interest cost.
Snowball method
Pay minimums on every debt and target the smallest balance. Early account closures can provide motivational wins, even if total interest is higher.
Choose a method you will sustain
A mathematically optimal plan that is abandoned can perform worse than a slightly more expensive plan you consistently follow.
How to use this number responsibly
Use the result as a planning range rather than a forecast. Re-run the calculation when your balance, contribution rate, debt, retirement date, tax situation or spending target changes. For investment projections, compare multiple return assumptions because future market returns are unknown.
What this calculator does not know
RetirementMetric does not know your complete tax situation, benefits, investment holdings, insurance needs or household expenses. The tools are educational estimates, not individualized investment, tax or legal advice.
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