Debt Snowball Calculator
Enter your debts below and choose a payoff strategy. The snowball method pays the smallest balance first for motivational wins. The avalanche method pays the highest-interest debt first to minimize total interest paid. Both use any extra money freed up when a debt is paid off to accelerate the next one.
Your Debts
| Debt Name | Balance ($) | APR (%) | Min. Payment ($) |
|---|
Amount above minimums applied to the target debt each month
Debt-Free In
Total Interest Paid
Total Amount Paid
Payoff Order
Snowball vs. Avalanche: Which Method Is Better?
Both methods use the same core mechanic: you pay the minimum on all debts, then put any extra money toward one target debt. When that debt is paid off, you "roll" its minimum payment into the next target — that's the snowball or avalanche.
Debt Snowball Method
Popularized by personal finance educator Dave Ramsey, the snowball method targets the smallest balance first, regardless of interest rate. The advantage is psychological — you get quick wins by eliminating entire debts sooner, which many people find highly motivating. Research backs this up: studies show that eliminating individual accounts can improve adherence to debt payoff plans.
Debt Avalanche Method
The avalanche method targets the highest-interest debt first. It is mathematically optimal — you will pay less total interest and become debt-free faster than with the snowball method (assuming the same extra payment). The downside is that the highest-interest debt may also be the largest balance, which can mean waiting longer for your first "win."
Which Should You Choose?
If you're highly motivated and confident you'll stick to the plan, choose the avalanche to minimize interest. If you've struggled to stay on track before or need the psychological boost of paying off accounts, choose the snowball. The best method is the one you'll actually follow through on.
Once debt is under control, shift your freed-up cash flow toward savings. The savings goal calculator can help you plan how long it'll take to hit a financial milestone once you're debt-free.
Frequently Asked Questions
What happens when one debt is paid off?
When a debt reaches a $0 balance, its former minimum payment is added to the extra payment amount and applied to the next debt in the queue. This is the "snowball" or "avalanche" rolling effect — your monthly payment toward the target debt grows with every account you eliminate.
Should I include my mortgage?
Most financial advisors recommend focusing the snowball/avalanche on high-interest consumer debt (credit cards, personal loans, car loans) before targeting a mortgage. A mortgage typically has the lowest interest rate and comes with potential tax benefits. However, you can include it in the calculator if you'd like to model paying it off early.
Does this account for variable interest rates?
This calculator assumes a fixed APR for the duration of the payoff period. For variable-rate debts, the results are an estimate based on today's rate.
