The debt snowball method pays off your smallest balances first while making minimum payments on everything else. Extra money goes to the smallest debt until it is gone, then rolls to the next smallest. The quick wins build motivation even if it is not always the lowest-interest strategy.
How to use this calculator
- Enter up to three debts with balance, interest rate, and minimum payment.
- Enter any extra monthly amount you can put toward debt.
- Review the recommended payoff order starting with the smallest balance.
- Check total payoff time, interest paid, and estimated debt-free date.
Formula
Each month, interest accrues on all balances, minimum payments are applied, and remaining funds go to the smallest balance debt. When a debt is cleared, its minimum payment rolls into the amount attacking the next target.
Example
With a $2,000 personal loan and $5,000 credit card, the snowball method pays the $2,000 loan first even if the card has a higher rate, giving you an early win before tackling the larger balance.
Frequently asked questions
- Why choose snowball over avalanche?
- Snowball prioritizes psychology and momentum. Clearing small debts quickly can help you stay consistent, even if you pay slightly more interest than the avalanche method.
- How many debts can I enter?
- This calculator supports up to three debts. Leave unused debt balances at zero if you have fewer accounts.