Illustrative estimates based on the numbers entered. Actual investment returns, lender calculations, fees and repayment schedules may differ. Not investment, lending, credit, tax or debt advice.
Pay the minimum on everything and put whatever is left against the most expensive debt. Compoundly runs both orderings on the same budget and reports the difference.
Smallest balance first
Highest rate first
Under these assumptions, avalanche results in €0 less interest.
Both are simply orderings of the same monthly budget. Which one suits you is your call.
| Point | Snowball | Avalanche |
|---|---|---|
| Year 0 | €28k | €28k |
| Year 0 | €26k | €26k |
| Year 1 | €24k | €24k |
| Year 1 | €22k | €22k |
| Year 1 | €20k | €20k |
| Year 1 | €18k | €18k |
| Year 2 | €16k | €16k |
| Year 2 | €13k | €13k |
| Year 2 | €10k | €10k |
| Year 2 | €7.8k | €7.8k |
| Year 3 | €5.4k | €5.4k |
| Year 3 | €2.9k | €2.9k |
| Year 3 | €361 | €361 |
Results are illustrative estimates based on the numbers you enter. Actual investment returns, lender calculations, fees and repayment schedules may differ. Compoundly is not investment, lending, tax or debt advice.
Each month every account is charged interest, every minimum is paid, and the remainder goes to the target account chosen by the ordering. Because the monthly budget is fixed, a cleared account frees its minimum into the pot automatically — the rolling effect is a consequence of the budget, not a separate rule.
The figures are arithmetic, not advice. Which ordering suits you depends on things this model cannot see, including how likely you are to stick with it.