Avalanche vs snowball on $6,500 of debt (worked example)
Two balances — $4,000 at 24% APR and $2,500 at 18% APR — with $400/month total toward debt:
- Avalanche (24% first): 20 months, $1,165.21 interest, $7,665.21 total
- Snowball ($2,500 balance first): 20 months, $1,371.68 interest, $7,871.68 total
- Avalanche saves $206.47 — same payment, same finish month, less interest
The gap is real but modest here, which is the honest truth about avalanche vs snowball: the math always favors the highest rate, but the behavioral win of killing a whole balance early is worth something too. Compare your own balances in the debt payoff calculator.
Two-debt model, interest accrues monthly — illustrative only.
Frequently asked questions
Avalanche or snowball: which saves more?
Avalanche always costs less in interest. On $4,000 at 24% + $2,500 at 18% with $400/month, it saves $206.47 vs snowball.
Does snowball ever beat avalanche?
On interest, no — avalanche is mathematically optimal. Snowball wins on psychology: faster first payoff keeps more people on plan.
How fast can I clear $6,500 of debt?
At $400/month in this example, 20 months either way. The payment size matters more than the order.