How the debt snowball works
With the debt snowball, you pay the minimum on every debt and put every extra dollar toward the smallest balance first. When that debt is gone, its minimum payment rolls into the next smallest balance. The payment you throw at each debt keeps growing, like a snowball rolling downhill.
Why people choose it
The snowball usually costs a little more interest than the avalanche method, because it ignores interest rates. What it gives you instead is speed on the first win: a small balance can disappear in a few months, and seeing an account hit zero is a strong reason to keep going. For many people, sticking with a plan matters more than squeezing out every dollar of interest.
How to use this calculator
- Enter each debt with its current balance, APR and minimum payment.
- Add the extra amount you can pay every month on top of all minimums.
- Read your debt-free date, total interest and the order your debts get paid off.
- Check the comparison box to see how the avalanche method would do with the same budget.
The calculator keeps your total monthly budget the same the whole time, so freed-up minimums automatically roll into the next debt. It assumes no new charges and fixed minimum payments.