Debt Snowball Calculator
Pay off your smallest debts first, build momentum, and stay motivated as you watch your debts disappear one by one.
Your Debts
Enter all your debts. The snowball method pays smallest balances first for quick wins.
This amount goes toward the smallest debt each month
Debt-Free Date
Feb 2029
37 months
Total Interest
$4,340
on $15,500 debt
Interest Saved
$12,672
vs minimum payments
Time Saved
130 months
10.8 years faster
Snowball Payoff Order
Debts sorted by balance (smallest first) - you'll pay them off in this order
Your monthly debt payment budget: $550
($350 minimums + $200 extra)
Payment Schedule
What is the Debt Snowball Method?
The debt snowball method, popularized by Dave Ramsey, is a debt reduction strategy where you pay off debts from smallest balance to largest, regardless of interest rate. As each debt is paid off, you roll that payment into the next debt—like a snowball growing as it rolls downhill.
How the Snowball Works
- 1List all debts smallest to largest
Ignore interest rates—only look at balance
- 2Make minimum payments on all debts
Stay current on everything
- 3Put all extra money toward smallest debt
Attack it with everything you have
- 4When paid off, roll payment to next debt
Your "snowball" grows bigger each time
- 5Repeat until debt-free!
Each payoff builds momentum
Why the Snowball Method Works
🧠 Psychology of Quick Wins
Paying off debt isn't just math—it's behavior. The snowball method leverages psychology by giving you quick wins that release dopamine and build confidence.
- ✓First debt paid off quickly (often within months)
- ✓Each win proves the system works
- ✓Momentum keeps you going through tough months
📊 Research Backs It Up
A Harvard Business Review study found people are more likely to pay off debt when they focus on small accounts first, even if it costs more in interest.
- ✓Higher completion rates than avalanche method
- ✓Less likely to abandon the plan mid-way
- ✓Better for people who need motivation
Snowball vs. Avalanche: Which to Choose?
| Factor | Debt Snowball | Debt Avalanche |
|---|---|---|
| Order | Smallest balance first | Highest interest first |
| Total Interest Paid | Usually more | Usually less |
| First Win | Faster | Slower |
| Motivation | High (quick wins) | Requires discipline |
| Best For | People who need wins | Math-focused people |
| Success Rate | Higher completion | More abandonment |
Bottom line: The best debt payoff method is the one you'll stick with. If you need motivation and quick wins, use the snowball. If you're disciplined and want to save maximum interest, use the avalanche. The interest difference is often smaller than people expect.
Snowball Method Example
Let's say you have three debts and $500/month to put toward debt:
Total time: ~28 months | You got your first win in just 2 months!
Tips for Snowball Success
💰 Find Extra Money
- • Sell items you don't use
- • Cut subscriptions temporarily
- • Pick up overtime or side gigs
- • Use tax refunds and bonuses
- • Reduce dining out and entertainment
🎯 Stay Motivated
- • Track progress visually (debt thermometer)
- • Celebrate each debt payoff
- • Share goals with accountability partner
- • Remember your "why"
- • Don't add new debt while paying off
⚠️ Common Mistakes
- • Not having an emergency fund first ($1,000 minimum)
- • Stopping after paying off first debt
- • Missing minimum payments on other debts
- • Taking on new debt during payoff
- • Not celebrating small wins
🏆 After Debt Freedom
- • Build 3-6 month emergency fund
- • Start investing (15% of income)
- • Pay cash for purchases
- • Avoid lifestyle inflation
- • Help others get debt-free
Frequently Asked Questions
Should I include my mortgage in the snowball?
Most experts recommend excluding your mortgage from the debt snowball. Focus on consumer debt first (credit cards, car loans, student loans, medical bills, personal loans). After becoming debt-free except the mortgage, you can decide whether to pay it off early or invest the money instead.
What about 0% APR debts?
Include them in the snowball based on balance. While mathematically you might prioritize them last, the psychological benefit of eliminating accounts often outweighs the small interest savings. Plus, having fewer active debts simplifies your finances.
Should I stop contributing to retirement?
If your employer offers a 401(k) match, contribute enough to get the full match—that's free money. Beyond that, you can temporarily pause extra retirement contributions to attack debt faster, then resume once debt-free. The exception: if you're close to retirement, consult a financial advisor.
My interest rates are really high. Should I use avalanche instead?
The interest rate difference between methods is often smaller than expected. If your smallest debt has a much lower rate than your largest, run both calculations to see the actual difference. Often it's only a few hundred dollars over the payoff period. Choose the method you'll actually stick with.
What if I get discouraged?
This is normal! Remember: you didn't get into debt overnight, and you won't get out overnight. Celebrate every small win. Find an accountability partner. Listen to debt-free success stories. Visualize your debt-free life. And remember—every payment brings you closer to freedom.