Debt snowball calculator

How the debt snowball works

List your debts from smallest balance to largest. Pay the minimum on every debt, and put every extra dollar on the smallest one. When it's paid off, add its whole payment to the next smallest. Your total monthly payment stays the same, but the amount hitting each debt grows like a rolling snowball.

Why people choose it

You clear your first debt quickly, often within a few months, which keeps motivation up. Research on consumer debt repayment has found that people who close out individual accounts are more likely to stick with their plan. The trade-off: if a large balance has the highest rate, snowball can cost more interest than avalanche.

Snowball vs avalanche

This calculator runs both. If the interest difference is small, snowball's quick wins are usually worth it. If avalanche saves a lot, consider it, or start with snowball to build momentum and switch later.

Questions