How we calculate
Every month, interest on all debts is covered first — none of them grow — and the remaining budget goes entirely to a priority debt. Snowball prioritizes the smallest balance; avalanche prioritizes the highest interest rate.
Formula used
Snowball: prioritizes the debt with the smallest balance. Avalanche: prioritizes the debt with the highest interest rate.
Estratégias bola de neve (menor saldo primeiro) e avalanche (maior taxa primeiro)
Practical example
With a R$ 3,000 debt at 4% monthly and a R$ 9,000 debt at 9% monthly, and a R$ 1,200 monthly budget, snowball attacks the R$ 3,000 debt first while avalanche attacks the R$ 9,000 one — the calculator shows how many months each strategy takes and total interest paid.
How to interpret the result
Avalanche usually results in less total interest paid, since it attacks the most expensive debt first. Snowball can be psychologically easier to sustain, since whole debts disappear faster.
Limitations
Assumes the monthly budget is constant and available, with no new charges on the debts, and that interest is always covered before any principal is paid down.