Debt Snowball Calculator
The debt snowball method pays the smallest debt first, then rolls that payment to the next. Simple, motivating, effective.
How the Debt Snowball Works
The debt snowball method pays off debts from smallest balance to largest, regardless of interest rate. You pay minimums on all debts, then direct every extra dollar to the smallest balance. When it's gone, roll that freed-up payment to the next smallest. The "snowball" grows larger with each debt eliminated.
Enter up to 4 debts above with their balance, interest rate, and minimum payment. Add an extra monthly payment amount — even $100-200/month significantly accelerates payoff.
Snowball vs. Avalanche: The Real Comparison
| Method | Order | Math | Psychology | Best for |
|---|---|---|---|---|
| Snowball | Smallest balance first | Pays more interest | Quick wins, high motivation | People who need momentum |
| Avalanche | Highest rate first | Minimizes interest | Slower wins, requires discipline | Math-driven, disciplined savers |
The avalanche saves more money mathematically — typically 1-6% of total interest. But research consistently shows the snowball has higher completion rates. The best method is the one you actually finish.
How Much Does the Extra Payment Matter?
The extra monthly payment has a far larger impact than the method choice. $5,000 credit card debt at 22% interest:
| Extra Payment | Payoff Time | Total Interest |
|---|---|---|
| $0 (minimum only) | Never ending | Grows indefinitely |
| $100/month extra | 38 months | $2,800 |
| $300/month extra | 16 months | $1,050 |
| $500/month extra | 10 months | $620 |
Once debt-free, redirect every former debt payment immediately to investments. The habit of high monthly cash flow deployment is already built — point it toward building wealth. See your FIRE number to know exactly what you're working toward.
Frequently Asked Questions
Should I pay off debt or invest at the same time?
High-interest debt (above 7-8%) should be paid off before investing beyond employer match. The guaranteed return of eliminating 20% credit card debt exceeds any realistic investment return. Lower-rate debt (below 5%) can coexist with investing, since expected market returns likely exceed the loan rate.
What's the fastest way to pay off $20,000 in debt?
Increase the extra monthly payment as much as possible. At $500/month extra on a $20,000 debt averaging 12% interest, payoff takes approximately 3.5 years with ~$4,000 in total interest. At $1,000/month extra, payoff takes about 1.7 years with ~$2,100 in interest — nearly half the time and interest.
Should I include my mortgage in the debt snowball?
Typically no. Mortgages are excluded from snowball/avalanche strategies because the interest rate is lower than expected investment returns, and the balance is too large for quick wins. Focus the snowball on consumer debt (credit cards, personal loans, car loans, student loans) and make regular mortgage payments.
What if I can't afford any extra payment right now?
Start with whatever is possible — even $25-50/month extra makes a difference. Focus first on finding that extra payment through expense cuts or side income. Alternatively, call your credit card company and request a lower interest rate — rates are reduced in roughly 25% of cases simply by asking.