Debt Snowball Calculator

The debt snowball method, popularized by Dave Ramsey, orders your debts from smallest to largest balance regardless of interest rate. You make minimum payments on everything except the smallest debt, which receives all your extra money. Once that debt is eliminated, its minimum payment rolls into the next smallest, creating a snowball effect. For example, with three debts — a $500 medical bill (minimum $25), a $3,000 credit card (minimum $75), and a $12,000 car loan (minimum $250) — and $400 extra per month, you would put $425 toward the medical bill first. It is gone in about 2 months. Then $500 per month ($425 + $75 minimum) attacks the credit card, clearing it in about 6 months. Finally, $750 per month demolishes the car loan in roughly 15 months. The psychological win of eliminating debts quickly keeps motivation high. This calculator shows your complete payoff timeline, total interest paid, and the exact month each debt disappears.

The debt avalanche method orders debts by interest rate (highest first) instead of balance. Mathematically, avalanche always saves more in total interest — sometimes significantly. If your highest-rate debt is also your largest, the avalanche method can save thousands. However, behavioral research shows that people using the snowball method are more likely to become completely debt-free because the early wins prevent discouragement. Consider someone with a $2,000 debt at 8%, a $5,000 debt at 22%, and a $15,000 debt at 6%. Avalanche targets the $5,000 at 22% first (correct financially), but it takes months before you eliminate even one debt. Snowball targets the $2,000 first, giving you a quick win. Our calculator lets you compare both strategies side by side, showing the exact dollar difference in total interest and the timeline for each. Many people find the interest savings from avalanche are modest (often $200-$800 on typical consumer debt) while the motivational benefit of snowball is priceless. Your debt details never leave your browser — important when entering real balances and rates.