Debt Snowball Calculator
See how quickly you can pay off your debts using the debt snowball method
Your Debts
Payoff Strategy
Your Debt Payoff Summary
Debt Payoff Schedule
| Debt | Starting Balance | Payoff Date | Interest Paid |
|---|
How It Works
Debt Balance Over Time
Debt Snowball Method
The debt snowball method is a debt reduction strategy popularized by financial expert Dave Ramsey. Unlike other approaches that focus on high-interest debts first, the snowball method prioritizes paying off your smallest debts first, regardless of interest rates. This creates psychological wins as you eliminate individual debts quickly, building momentum and motivation to continue your debt-free journey.
With the snowball method, you make minimum payments on all debts while putting any extra money toward your smallest debt. Once that debt is paid off, you roll its payment into tackling the next smallest debt, creating a “snowball” effect that accelerates your debt payoff over time.
Research has shown that people who use the debt snowball method are more likely to stick with their debt repayment plan because of the psychological boost that comes from completely eliminating individual debts. While mathematically it may not always save the most interest compared to targeting high-interest debts first (the avalanche method), the motivational benefits often lead to better long-term success.
How to Use the Debt Snowball Calculator
Step 1: Enter Your Debt Information
Start by entering the details of each debt you want to pay off. For each debt, provide a name (like “Credit Card” or “Car Loan”), the current balance, interest rate, and minimum monthly payment. Click the “Add Another Debt” button if you have more than one debt to include.
Step 2: Specify Any Extra Payment
Enter any additional amount you can pay each month beyond the minimum payments. Even a small extra amount can significantly reduce your payoff time and interest paid.
Step 3: Choose Your Payoff Strategy
Select either the “Snowball Method” (lowest balance first) or “Avalanche Method” (highest interest rate first) depending on your preference. The snowball method provides psychological wins, while the avalanche method saves more money on interest.
Step 4: Review Your Results
After clicking “Calculate Debt Payoff Plan,” examine your personalized payoff schedule. The summary shows your total debt, interest paid, payoff time, and savings compared to making only minimum payments. The detailed schedule displays when each debt will be paid off.
Step 5: Adjust and Optimize Your Plan
Experiment with different extra payment amounts or strategies to see how they affect your debt-free date. Try increasing your monthly contribution to see how much faster you could become debt-free and how much interest you could save.