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 smallest balance. When an account clears, its payment stays in the pot and rolls onto the next one.
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.
Both orderings spend exactly the same amount each month. The only difference is which account the surplus goes to first: the smallest balance under snowball, the highest rate under avalanche.
Avalanche will generally cost no more in interest, because the surplus is always attacking the most expensive debt. Snowball generally clears its first account sooner, which some people find easier to keep going with. Compoundly reports both differences in actual numbers and leaves the choice to you — it does not tell you which to pick.