Debt Snowball Calculator

Pay Off Debt Faster With One Strategy

The debt snowball is a debt-payoff strategy popularised by Dave Ramsey and others. The method is simple: list all your debts from smallest balance to largest. Pay the minimum on every debt except the smallest. Put every extra pound you can find toward the smallest debt until it's gone. Then take the money you were paying on the smallest debt (minimum + extra) and add it to the minimum on the next-smallest debt. Repeat until you're debt-free.

The snowball is psychologically powerful: you see debts disappearing quickly, which keeps you motivated. The alternative — the "avalanche" method, which targets the highest-interest debt first — saves more interest in theory, but many people give up because progress feels slow. The snowball trades a small amount of extra interest for a much higher chance of success.

How This Calculator Works

Enter up to four debts with their balances, APRs, and minimum payments. Enter an extra monthly amount you can afford on top of all minimums. The calculator simulates the snowball: it pays minimums on all debts, directs the extra to the smallest balance first, and rolls up as each debt is cleared. It shows your debt-free date, total interest paid, and the interest saved compared to paying only minimums.

Snowball vs Avalanche

The avalanche method (targeting the highest-APR debt first) always saves more interest than the snowball — but only if you actually stick with it. Studies show that the snowball's quick wins keep people motivated, leading to higher completion rates. If you're confident in your discipline, use the avalanche. If you've struggled to stick to debt plans before, use the snowball. The best method is the one you'll actually follow through to completion.

Related Tools

• Debt Consolidation — an alternative to the snowball.
• Budget Calculator — find extra money for the snowball.
• Personal Loan Calculator — see individual loan costs.