Debt Snowball Calculator
Pay off multiple debts starting with the smallest balance first for psychological wins.
Who This Is For
If you carry multiple debts and find it hard to stay motivated, the snowball method is designed for you. By eliminating the smallest balances first, you build momentum and see quick progress that keeps you going.
Example Scenario
Suppose you have a $2,000 credit card at 22% and a $5,000 card at 18%, with $200/month extra to put toward debt. The snowball method pays off the $2,000 card in about 8 months, then rolls that payment into the larger card.
Total payoff: roughly 24 months. The first win comes fast, keeping motivation high.
How It Works
The Snowball method prioritizes your smallest debt first:
- Pay minimums on all debts
- Apply extra payments to the smallest balance
- When paid off, roll that payment to the next smallest
- Repeat until debt-free
This method provides quick wins that keep you motivated throughout your debt payoff journey.
Assumptions and Formula
Assumptions used in this model:
- APR and minimum payments stay constant.
- No new charges are added to any balance.
- Extra budget is fully applied every month.
Payment order formula: sort debts by lowest balance first. Each month, pay minimums on all debts and route all extra cash to the smallest remaining balance.
How to Interpret Your Results
| Signal | What It Means | Action |
|---|---|---|
| First debt closes quickly | Snowball momentum is working | Keep extra budget fixed and consistent |
| High total interest | Motivation is high but cost is higher | Run avalanche comparison before committing |
| Long tail at end | Largest debts still dominate late timeline | Increase extra payment when first debt closes |
Frequently Asked Questions
Deep Dive Guide
Read the complete Debt Snowball guide
Step-by-step setup, motivation tactics, and mistakes to avoid.