Introduction
Snowball and avalanche are two ways to order multiple debts. Snowball pays smallest balances first for quick wins. Avalanche pays highest rates first to save the most interest. Both need one clear monthly payment you can sustain.
Quick answer
- Snowball: smallest debt first, for momentum.
- Avalanche: highest rate first, for lowest total interest.
- Either method works only if you stop adding new debt.
What is it?
List every debt with its balance, rate and minimum payment. Pay minimums on all, then put every extra pound on the first debt in your chosen order, then roll that payment to the next debt.
How to use the calculator, step by step
- Enter your numbers in the calculator linked above.
- Press Calculate.
- Check the main result and the total, not just the first number.
- Try a second version — a different rate, term or payment — and compare the totals.
Worked example
Total debt £5,000 at an average 18%, paying £200 a month: about 31.6 months to debt-free. Try £250 a month in the calculator and compare the date.
Common mistakes
Choosing a method you will not stick to; paying only minimums; ignoring fees and rate changes.
Frequently asked questions
Is the calculator result exact? No, it is an estimate for learning and planning, based on the numbers you enter and the assumptions stated on the calculator page.
Should I check with a professional? Yes, for a mortgage, loan, tax or investment decision, check with your lender, bank, tax authority or a qualified adviser before you decide.
Can I use this in the US, UK or Canada? The maths is the same, but rates, tax bands and lender rules differ by country. Use the numbers and rules for your country, and check the official source where a rate or band matters.
Conclusion and next step
Try your own numbers in the calculator, compare the totals, and read the next calculator guide from the homepage when you are ready.
Disclaimer: This article and calculator are for information and education only. Results are estimates and not financial advice. Please check with your lender or a qualified adviser before making a financial decision.