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Debt Snowball vs Avalanche Calculator

Compare smallest-balance-first with highest-rate-first repayment.

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Currency changes the label only. No exchange conversion or local tax rules are applied.

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Avalanche: months to debt-free

25 months
Avalanche interestAED 4,255.85
Snowball months26 months
Snowball interestAED 5,292.22

An illustration based on your inputs, not a quote or recommendation.

Read the formula and assumptions below before making a decision.

Debt Snowball vs Avalanche: worked example

This is an illustrative scenario using the default inputs, not your personal result. Amounts use AED for illustration; the general formula also accepts your own figures in the selected currency.

Example inputs
InputExample value
Debt A balanceAED 5,000.00
Debt A annual rate8%
Debt A minimum paymentAED 150.00
Debt B balanceAED 15,000.00
Debt B annual rate24%
Debt B minimum paymentAED 400.00
Total monthly debt budgetAED 1,000.00

Avalanche: months to debt-free: 25 months

  • Avalanche interest: AED 4,255.85
  • Snowball months: 26 months
  • Snowball interest: AED 5,292.22

Before you use this estimate

Enter both debts and minimum payments, then choose a total budget that covers those minimums. The model rolls freed payments into the remaining balance.

What is the difference between snowball and avalanche?

Snowball directs extra money to the smallest balance. Avalanche directs it to the highest rate. Both pay the entered minimums on other debts and keep the overall budget constant.

How the calculation works

Pay each entered minimum, then direct remaining budget to the lowest balance (snowball) or highest rate (avalanche). Roll freed payments forward.

Assumptions & limitations

Two debts, fixed nominal rates and fixed minimum amounts; no fees or new borrowing. A budget that does not clear debt within 100 years is flagged.

Use the result thoughtfully

Try a second scenario to see how a change in costs, timing or contributions affects the result. Keep all amounts in one currency and use consistent periods. Confirm important figures against your own records before acting.

Last reviewed: 3 November 2026 · Method and example review by CashOrbits.
Full precision is used for calculations; displayed amounts are rounded.