Debt Snowball Calculator
Plan your debt payoff strategy using the snowball method — smallest balance first. Enter values for instant results with step-by-step formulas.
Formula
Snowball Method: Pay minimums on all debts, apply extra payment to smallest balance first
The debt snowball orders debts from smallest to largest balance. You attack the smallest debt with all extra money while paying minimums on the rest. When one is paid off, its payment rolls into the next smallest debt, creating a growing 'snowball' of payments.
Worked Examples
Example 1: 3 Debts with $200/month Extra
Problem: Credit card ($5,000, 22%, $100 min), car loan ($12,000, 6%, $350 min), student loan ($25,000, 5.5%, $280 min). $200/month extra using snowball.
Solution: Order: Credit card first (smallest), then car loan, then student loan.\nCredit card paid off in ~14 months\nCar loan paid off in ~28 months\nStudent loan paid off in ~45 months\nTotal interest saved vs. minimum payments: thousands of dollars
Result: Debt-free in ~45 months with snowball method
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method, popularized by Dave Ramsey, pays off debts from smallest balance to largest regardless of interest rate. You make minimum payments on all debts and put every extra dollar toward the smallest balance. Once it's paid off, you 'snowball' that payment into the next smallest debt. The psychological wins of quickly eliminating debts keep you motivated, even if it costs slightly more in interest than the avalanche method.
Snowball vs. avalanche — which is better?
Mathematically, the avalanche method (highest rate first) saves more money in interest. However, research shows people using the snowball method are more likely to become debt-free because quick wins boost motivation. If your rates are similar, use snowball. If you have a very high-rate debt (like 25% credit card) alongside low-rate debt (4% student loan), avalanche saves significantly more. The best method is the one you'll stick with.
How much extra should I pay toward debt?
Pay as much extra as your budget allows. Even $50-100/month extra can shave years off repayment and save thousands in interest. Use windfalls (tax refunds, bonuses) for extra payments. Before aggressive debt payoff, ensure you have a small emergency fund ($1,000-2,000) to avoid adding new debt. Some people pause retirement contributions beyond employer match to accelerate debt payoff — do the math to see if this makes sense for your rates.
What is the debt snowball vs debt avalanche method?
The debt snowball method pays off debts smallest-to-largest regardless of interest rate, providing psychological wins. The debt avalanche method pays off highest-interest debts first, saving more money mathematically. Both require making minimum payments on all debts while putting extra money toward the target debt.
How does debt consolidation work mathematically?
Debt consolidation combines multiple debts into one loan, ideally at a lower interest rate. Calculate total current monthly payments and total interest paid over remaining terms. Compare to the consolidated loan's monthly payment, total interest, and any fees. Consolidation saves money only if the new rate is lower and you do not extend the term significantly.
How do I get the most accurate result?
Enter values as precisely as possible using the correct units for each field. Check that you have selected the right unit (e.g. kilograms vs pounds, meters vs feet) before calculating. Rounding inputs early can reduce output precision.