Debt Snowball Calculator
Create a payoff plan using the snowball method and compare it to the avalanche method.
Payoff Order (Snowball)
| # | Debt | Paid Off In | Interest Paid |
|---|
Snowball vs Avalanche
| Method | Time | Total Interest |
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Request a ToolHow to Use the Debt Snowball Calculator
The debt snowball method pays off your smallest balance first for quick wins, then rolls that payment into the next smallest debt. Enter your debts and an optional extra monthly payment to see your payoff plan:
- Enter each debt with its name, balance, interest rate, and minimum payment.
- Add an extra monthly payment if you have money beyond minimums to put toward debt.
- The calculator shows your payoff order, timeline, and total interest. It also compares snowball to avalanche (highest rate first) so you can see the trade-off.
About the Debt Snowball Method
The snowball method was popularized by Dave Ramsey. You list debts from smallest to largest balance, pay minimums on everything, and throw all extra money at the smallest debt. When the smallest is paid off, you roll its payment into the next smallest. The psychological momentum of quick wins helps people stay motivated.
The avalanche method targets the highest interest rate first, which saves more money mathematically. This calculator shows both so you can decide which approach works better for your situation. Many people find the snowball method more effective in practice because motivation matters more than optimization.
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method pays off debts from smallest balance to largest. You pay minimums on all debts and put extra money toward the smallest. When it is paid off, you roll that payment into the next smallest. The "snowball" grows as each debt is eliminated.
Is snowball or avalanche better?
Avalanche saves more money by targeting high-interest debt first. Snowball provides quicker wins that keep you motivated. Research suggests the snowball method leads to higher success rates because people are more likely to stick with the plan.
How much extra should I pay?
Any extra amount helps. Even $50-100 per month can cut years off your debt payoff timeline. The more you can put toward debt, the faster you become debt-free and the less interest you pay.
Should I build an emergency fund first?
Most financial advisors recommend a small emergency fund ($1,000) before aggressively paying debt. This prevents you from going deeper into debt when unexpected expenses come up. After debts are paid, build a full 3-6 month emergency fund.