How to use the debt snowball calculator
- 1 Enter each debt's balance, interest rate and minimum payment (up to four).
- 2 Enter the extra payment you can add each month.
- 3 Choose the snowball or avalanche method.
- 4 Read your debt-free date, total interest, payoff order and savings.
Worked example
Three debts: $2,500 at 24% ($75 minimum), $6,000 at 18% ($150) and $12,000 at 7% ($250), with $200 extra a month. With the snowball method you pay $675 a month and are debt-free in 36 months, paying $3,430 of interest, in the order Debt 1, Debt 2, Debt 3. Paying only the minimums would take 58 months and cost $6,991, so the plan saves $3,561. Here avalanche gives the same result because the smallest balance also has the highest rate.
Sticking to your payoff plan
- Stop adding new debt while you pay down the old.
- Automate the minimums so you never miss one.
- Put windfalls on the target debt: refunds, bonuses, raises.
- Celebrate each paid-off debt to stay motivated.
Check one card with the Credit Card Payoff Calculator, free up money with the Budget Calculator, and compare a consolidation loan with the Personal Loan Calculator.
Features
Snowball and avalanche
Runs both methods so you can compare months and interest.
Rolling payments
Freed-up minimums roll into the next debt automatically.
Savings vs minimums
Shows the interest and time saved by your extra payment.
When to use it
Credit card debt
Check a single card's payoff with the Credit Card Payoff Calculator.
Making room in the budget
Find extra money to put toward debt with the Budget Calculator.
Before buying a home
Lower debt improves your ratio. Check it with the Debt-to-Income Calculator.
Consolidating debt
Compare with a consolidation loan in the Personal Loan Calculator.
Related Money and Budget tasks
Frequently asked questions
What is the debt snowball method?
You list debts from the smallest balance to the largest, pay the minimum on all of them and put every extra dollar on the smallest. When it is gone, its payment goes to the next one. Quick wins keep you motivated.
What is the debt avalanche method?
The same plan, but you target the debt with the highest interest rate first. It saves the most interest and is usually slightly faster.
Snowball or avalanche: which is better?
Avalanche saves more money; snowball gives faster wins. If your debts have similar rates, the difference is small, so choose the method you will stick with.
How much extra should I pay?
Any extra helps. In the example, $200 a month on top of $475 of minimums clears $20,500 in 36 months instead of 58 and saves $3,561 of interest.
What if a minimum does not cover the interest?
The balance would grow forever. The calculator warns you: raise the payment, ask for a lower rate or move the balance to a cheaper loan.
Should I include my mortgage?
Usually not. Debt snowball plans are for consumer debt such as credit cards, personal loans, car loans and medical bills. Mortgages are long-term and low-rate.
Should I build savings first?
Many people keep a small emergency fund, for example $1,000 or one month of expenses, so a surprise bill does not go on a card. Size yours with the Emergency Fund Calculator.
Does a balance transfer help?
A 0% balance transfer card can cut interest, but watch the transfer fee (often 3% to 5%) and the rate when the promotion ends.
Will paying off debt improve my credit score?
Usually yes, especially paying down credit card balances, which lowers your credit utilization. Keep old cards open to keep your credit history.
Is the interest exact?
It is a close estimate: interest is added monthly at the rate you enter. Card issuers charge daily interest, so actual amounts differ slightly.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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