https://calculating.ca/calculators/finance-money/debt-snowball-avalanche-calculator/
Finance & Money / THE MITEY TOOLKIT
Debt Snowball vs Avalanche
Compare two payoff orders while keeping the same total monthly budget and minimum payments.
Snowball interest minus avalanche interest
$932.08
From your inputs. Explore the breakdown below.
- Avalanche payoff time
- 3 yr 3 mo
- Snowball payoff time
- 3 yr 4 mo
- Avalanche interest
- $5,057.40
- Snowball interest
- $5,989.48
- Avalanche targets the highest entered rate; snowball targets the smallest balance.
- Both strategies pay the fixed entered minimums first and roll the same full budget forward.
FOLLOW THE CASH FLOW
Annual cash-flow totals
Balance is the period-end value; growth and payments are totals for that year or final partial year. Download the ledger for every modeled period. Figures in CAD.
| Year | Closing balance | Interest / growth | Payment / withdrawal |
|---|---|---|---|
| Now | $18,000.00 | $0.00 | $0.00 |
| 1 | $13,378.57 | $2,578.57 | $7,200.00 |
| 2 | $7,914.27 | $1,735.70 | $7,200.00 |
| 3 | $1,438.54 | $724.27 | $7,200.00 |
| 4 | $0.00 | $18.86 | $1,457.40 |
CHANGE ONE VARIABLEWhat moves your answer?
Compare five values while keeping every other input the same. These are scenarios, not likelihoods or forecasts.
| Input value | Primary result | Use scenario |
|---|
BEHIND THE ANSWER
Formula and method
Monthly budget = minimum payments + extra directed to the strategy’s priority debt.
Interest is added monthly to each balance. Fixed minimums are paid first, then remaining budget goes to the highest-rate debt (avalanche) or smallest-balance debt (snowball). A cleared debt’s allocation stays in the total budget and is redirected to the next debt.
Context sources checked October 24, 2026
These sources explain the subject. The model follows the formula and assumptions shown here; a source link does not imply endorsement.
Worked examples
Compare orders with an extra budget
- Debt 1 · balance:
- 12000
- Debt 1 · annual rate:
- 19.9
- Debt 1 · fixed monthly minimum:
- 300
- Debt 2 · balance:
- 6000
- Debt 2 · annual rate:
- 8.9
- Debt 2 · fixed monthly minimum:
- 150
- Debt 3 · balance:
- 0
- Debt 3 · annual rate:
- 0
- Debt 3 · fixed monthly minimum:
- 0
- Total monthly debt budget:
- 600
Snowball interest minus avalanche interest: $932.08
Assumptions and limits
- Fixed entered minimum amounts, rates and budget; no new spending or fees.
- No lender-specific minimum percentage, daily compounding, credit scoring or negotiation model.
- Insufficient budgets are rejected; the model is limited to 100 years.
This tool provides an educational estimate. Rules, rates and personal circumstances can change the answer. Review the assumptions before relying on a result. Report a correction.
Common mistakes to avoid
- Treating an illustrative rate as a lender quote or a return forecast.
- Comparing scenarios with different time periods or leaving out relevant fees.
Frequently asked questions
Why keep the same monthly budget?
It isolates the effect of payoff order. Reducing the budget after clearing a debt would change the comparison and generally extend repayment.
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