Debt Snowball Calculator
Plan a debt snowball: pay the smallest balance first, roll each payment into the next, and see your payoff time and total interest.
How it works
Pay every minimum, then throw the extra at the smallest balance. When a debt clears, its payment rolls into the next-smallest — a growing “snowball.”
The debt snowball orders your debts from smallest balance to largest and puts every spare dollar toward the smallest, while paying minimums on the rest. The moment the smallest is gone, its whole payment stacks onto the next one, so each payoff accelerates the following one. It ignores interest rates in favor of quick, motivating wins — the avalanche method (highest rate first) saves slightly more interest, but many people stick with the snowball because the early victories keep them going.
Worked example
With a $500 card at 22%, a $2,500 loan at 18% and an $8,000 balance at 15%, plus $200 extra a month on top of the $225 in minimums, the $500 debt falls first (in about 3 months), then the $2,500, then the $8,000 — clearing all three in roughly 2 years 8 months with about $2,448 in total interest.
Frequently asked questions
Snowball or avalanche — which is better?
The avalanche (highest APR first) minimizes total interest mathematically. The snowball (smallest balance first) delivers fast wins that build momentum. The difference in interest is often small, and the best method is the one you actually finish.
How does the “snowball” grow?
Once a debt is paid off, you keep paying the same total each month — that freed-up payment is added to the attack on the next debt. Each payoff makes the next one faster, like a snowball rolling downhill.
Should I stop investing while I do this?
Capture any employer retirement match first — that is free money. Beyond that, many people pause extra investing to knock out high-interest debt quickly, then redirect those payments into savings once they are debt-free.
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This is an educational estimate, not financial or tax advice. Confirm figures with a professional.