Debt snowball vs avalanche: which to model first

Both methods use the same minimum payments and the same extra cash. They differ only in which balance gets the extra dollars first. Modeling both in a spreadsheet shows the tradeoff before you commit.

Snowball: smallest balance first

List debts from lowest balance to highest. Pay minimums on everything; put every spare dollar on the smallest balance. When that one clears, roll its payment onto the next smallest. The win is psychological: accounts disappear sooner.

Avalanche: highest APR first

List debts from highest interest rate to lowest. Same minimums and same extra cash, but the extra hits the costliest APR first. Over a long payoff, this usually means less total interest than snowball.

What a good comparison sheet shows

Each debt: name, balance, APR, minimum payment
Your monthly budget for debt (minimums + extra)
Estimated months to clear under snowball vs avalanche
Estimated interest paid under each method
A month-by-month plan for the method you pick

Enter balances once. Let formulas reorder and project. Yellow cells for inputs; gray cells for calculations. No macros required.

How to choose

If interest savings matter most and you will stick with the plan, avalanche is the usual math winner. If motivation matters more — and unpaid interest is acceptable — snowball’s early wins can keep you paying. The right answer is the plan you will finish. A side-by-side model makes that choice concrete.

This is a planning framework, not personalized financial advice. Confirm numbers with your own balances and a preparer or advisor if needed.