§ Calculator · Debt
Snowball vs Avalanche
Two debt-payoff strategies side-by-side. Snowball pays the smallest balance first (psychological wins). Avalanche pays the highest rate first (least total interest).
What this is
Two ways to pay off debt
Both methods pay minimums on everything + throw extra cash at one debt at a time. The difference is WHICH debt gets the extra cash.
- ·SNOWBALL (Dave Ramsey): smallest balance first. You see a debt vanish quickly, psychological win, and momentum builds.
- ·AVALANCHE: highest interest rate first. Mathematically optimal, you pay the least total interest.
- ·Both finish in roughly the same time. Avalanche is cheaper; snowball is motivating. Pick the one you’ll stick to.
Your debts
If you pay ONLY the minimums (no extra)
Months to debt-free
83
Total interest paid
$6,139
Total paid out
$30,839
Paying only minimums costs $3,099 MORE in interest than adding $250/mo extra on a snowball plan.
With $250/month extra
Snowball · months
35
Snowball · interest
$3,040
Avalanche · months
35
Avalanche · interest
$3,040
Both strategies finish at roughly the same time + cost given these inputs.
Payoff order (avalanche)
| # | Debt | Cleared in | Interest paid |
|---|---|---|---|
| 1 | Visa | 1y 1m | $481 |
| 2 | Line of credit | 1y 11m | $932 |
| 3 | Student loan | 2y 11m | $1,627 |
Avalanche clears the highest-rate debt first (cheapest overall). Snowball clears the smallest balance first for momentum.
Educational coaching. Not financial advice. Pick the strategy you’ll actually stick to. Avalanche wins on paper; snowball wins on motivation.
Disclaimer
Educational, not financial advice. Output is generated by an AI assistant using simplified assumptions. Tax rates, contribution limits, and benefit amounts change annually; confirm with a CFP, CPA, or the relevant Canadian regulator (CRA, FSRA, OSC, IIROC) before acting.
Payoff chart
Total debt remaining, month by month
Each line shows the SUM of every debt balance you still owe at the end of each month. Watch which line hits zero first, that’s your debt-free date. The faster the line drops, the less interest you pay.
Avalanche (dashed green) usually drops faster because it kills the highest-interest debt first, less interest accruing means more of every payment hits principal. Snowball (solid blue) wins on quick small-balance wins for motivation.