Debt snowball vs avalanche: one worked example, both finish lines

Two payoff orders get argued about more than any other money question. The snowball pays your smallest balance first. The avalanche pays your highest interest rate (APR) first. Both pay every minimum, both put the same extra money on one debt at a time — the only difference is the order. So the honest way to compare them is not an opinion. It is one set of debts, run both ways, with the interest counted.

One worked example from our demo file

The example below is the filled demo copy that ships with our Debt Payoff Tracker — four debts, one extra monthly payment, a January 2026 start. The numbers are the demo file's own results, recomputed and checked:

• Snowball: debt-free Nov 2028, total interest $2,891.53
• Avalanche: debt-free Oct 2028, total interest $2,654.65
• Minimums only, no plan: 68 months, total interest $6,536.09

What the example actually shows

First: the plan matters more than the order. Both plans finish more than two years ahead of minimums-only and save thousands in interest. The gap between the two plans — one month and $236.88 in this example — is real but small next to the gap between having a plan and not having one.

Second: the avalanche wins on math when the highest-rate debt is not the smallest one, because every month a high-rate balance survives, it costs more. The snowball wins on momentum when a small debt can be cleared fast, because a debt that is gone is a minimum payment freed up and a reason to keep going.

Third: the right answer depends on your debts, not on the argument. If your smallest balance also carries your highest rate, both methods give the same order and the debate is over. Run your own numbers both ways and look at the two finish lines.