# Debt Snowball vs Avalanche Calculator

> Enter up to five debts and a monthly budget to compare snowball, avalanche and minimum payments: months to debt free, total interest and payoff order.

Take four debts totalling $32,500 and $1,000 a month to pay them with. The snowball and avalanche plans both finish in 3 years and 1 month, but avalanche costs $4,201 in interest and snowball $4,443, a gap of $242. Paying only the minimums drags on for 6 years and 7 months and costs $8,341 in interest, which is the difference that really matters.

Enter up to five debts below, each with a balance, a yearly rate and a minimum payment, then set what you can pay in total each month. The tool runs all three plans month by month.

## How do the snowball and avalanche methods work?

Both plans pay every minimum, then send all the leftover money to one debt at a time. Snowball starts with the smallest balance, so accounts close quickly. Avalanche starts with the highest interest rate, so you pay the least interest. When a debt is cleared, its payment rolls into the next one. The example holds a $4,500 card at 19.99% (minimum $120), an $8,000 line of credit at 9.5% ($160), a $14,000 car loan at 7.49% ($320) and a $6,000 student loan at 5.2% ($90).

## Which one costs less?

Avalanche never costs more interest, but how much it saves depends on how far apart your rates are and how much extra you can pay. With the $1,000 budget it saves $242. Drop the budget to $750 and it saves $103 ($6,604 of interest against $6,707). The two plans also clear accounts in a different order. The card goes first in both, in month 12, and then they split:

| Plan | Payoff order (month cleared) |
| --- | --- |
| Snowball | Card 12, student loan 22, line of credit 31, car loan 37 |
| Avalanche | Card 12, line of credit 24, car loan 33, student loan 37 |

## How does interest work on cards and lines of credit?

Lenders quote an annual rate, and card issuers typically work out interest on your average daily balance and post it once a month, as the [Financial Consumer Agency of Canada sample card agreement](https://www.canada.ca/en/financial-consumer-agency/services/industry/bulletins/information-box-examples/credit-agreement-credit-card.html) shows. This calculator divides the annual rate by 12 each month, so a real card can cost slightly more. Card minimums are often the greater of a flat $10 or about 3% of the balance, according to the [Financial Consumer Agency of Canada: paying off your credit card](https://www.canada.ca/en/financial-consumer-agency/services/credit-cards/pay-off-credit-card.html) page, so they shrink as the balance falls. The tool keeps your minimum fixed, which pays debts off a little faster than a shrinking minimum would.

## What if my budget barely covers the minimums?

Look at the first-month interest. If your budget is less than the interest charged, balances grow, and the tool tells you the plan doesn't finish. For a single card, try the [credit card payoff calculator](https://tax-services.ca/calculators/loans-debt/credit-card-payoff). To see whether consolidating would help, compare it with the [personal loan calculator](https://tax-services.ca/calculators/loans-debt/personal-loan-calculator), and use the [budget calculator](https://tax-services.ca/calculators/savings-budget/budget-calculator) to find the monthly amount.

## Where does this information come from?

Card interest and minimum payment practice come from the Financial Consumer Agency of Canada pages named above. The payoff months and interest figures come from this site's own month-by-month simulation, not from a lender. Checked in October 2026. This is an independent information site: we provide no services, we do not represent the CRA or any organization, and we do not guarantee that anything here is accurate or current. We accept no liability for decisions based on it. Check the official source before you rely on it. See the [full disclaimer](https://tax-services.ca/disclaimer).

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Source: https://tax-services.ca/calculators/loans-debt/debt-snowball-vs-avalanche
Last updated: 2026-10-10
Independent information site. Not affiliated with the CRA. No services, no guarantee of accuracy. See https://tax-services.ca/disclaimer