❄️ Debt Snowball Calculator
Pay smallest balances first for quick wins
💳 Your Debts
📊 Payoff Results
Understanding the Debt Snowball Method
The debt snowball method, popularized by financial expert Dave Ramsey, is a debt reduction strategy that focuses on paying off debts from smallest to largest balance. While you make minimum payments on all debts, any extra money goes toward the smallest debt until it's eliminated.
How the Snowball Method Works
List all your debts from smallest to largest balance, ignoring interest rates. Pay minimums on everything except the smallest debt, which receives every extra dollar. Once that debt is paid off, roll that payment into the next smallest debt—creating a "snowball" effect that grows larger with each debt eliminated.
Why Psychology Matters in Debt Payoff
The snowball method works because it provides quick wins. Eliminating a debt in weeks rather than years creates momentum and reinforces positive behavior. Studies show that people who experience early successes are more likely to complete their debt-free journey.
When to Use This Calculator
- You have multiple debts and need a clear payoff plan
- Motivation is your biggest challenge with debt repayment
- You want to see how extra payments accelerate your timeline
- You're comparing snowball vs. avalanche strategies
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method involves paying off debts from smallest to largest balance, regardless of interest rate. You make minimum payments on all debts except the smallest, which gets extra payments until paid off. Then you roll that payment to the next debt.
Is debt snowball or avalanche better?
The avalanche method saves more money on interest mathematically, but the snowball method provides psychological wins that keep many people motivated. Studies show motivation is the biggest factor in debt payoff success—choose based on what will help you stick to your plan.
How long does it take to become debt-free with snowball?
The timeline depends on your total debt, interest rates, and how much extra you can pay monthly. Most people see their first debt eliminated within 2-6 months, providing early motivation to continue. The full journey typically takes 2-5 years for moderate debt levels.