Debt Snowball Payoff Calculator

How it works

Each month: add interest (balance × APR ÷ 12) to every debt, pay all minimums, then send the leftover — minimums freed up plus your extra — to the smallest-balance debt until it is gone, then the next-smallest.

The debt-snowball method ignores interest rates and orders debts from the smallest balance to the largest, funneling every extra dollar at the smallest one first. Knocking out a whole balance quickly delivers a visible win that keeps many people motivated, and each cleared debt frees its minimum payment to roll into the next — the “snowball” growing as it goes. It usually costs a little more interest than the avalanche method, but the behavioral momentum is why it is often the more successful plan in practice.

Worked example

With balances of $3,000 at 27%, $5,000 at 22% and $8,000 at 15%, and $200 extra on top of the minimums, the snowball clears the $3,000 first, then the $5,000, then the $8,000. All three are gone in roughly 2 years 5 months — about the same timeline as the avalanche here, but at slightly higher total interest because the highest-rate debt is not paid first.

Frequently asked questions