Debt Snowball Calculator

How the debt snowball method works

You pay the minimum on every debt. Every extra dollar goes to the debt with the smallest balance. When that debt is gone, its minimum payment joins the extra and goes to the next-smallest balance. The payment grows with each debt that drops off.

Interest rates don’t decide the order. Ramsey Solutions, which teaches this method, tells people to list debts smallest to largest and ignore the rates. The point is a fast first payoff.

How to use this calculator

1. Enter each debt: name, current balance, APR and minimum payment.
2. Open the advanced options if needed: a promo APR and promo months for an intro offer, or a minimum payment rule based on a percent of the balance with a floor.
3. Add your extra monthly payment and any one-time lump sums, with the month each arrives.
4. Leave the strategy on snowball, or switch to avalanche, custom order or minimums only.
5. Use the goal seek to pick a debt-free month and year and see the extra you would need each month.

What the results mean

Your debt-free date is the month of your last payment. First debt paid off shows how long the first win takes, the number the snowball is built to shrink. Total interest, total paid and interest saved versus minimums only sit next to it. Below are the payoff order with each debt’s payoff month, the four-strategy table, a balance chart and the month-by-month schedule, which you can export as CSV, print, or share with debt names hidden.

Worked example

Take three debts and add $300 a month, so the monthly budget is $845.00.

The snowball pays Card 1 first. Its $75 minimum plus the $300 extra then go to Card 2, and after that everything goes to the car loan. In this example the smallest balance also has the highest rate, so avalanche picks the same order and the same result.

Snowball or avalanche?

Avalanche pays the highest APR first and usually costs less interest. The snowball trades some of that saving for earlier wins, and when your smallest balances also carry your highest rates, it costs nothing extra. Try the debt avalanche calculator, and read debt snowball vs avalanche for the full trade-off.

How we calculate this

Each month interest is added at the APR divided by 12 and rounded to the cent, then every minimum is paid, then the rest of the budget goes to the smallest starting balance (ties go to the higher APR). The budget stays fixed, so freed minimums roll over, and a leftover in a payoff month moves to the next debt that month. See the methodology page for every rule.

Related

• Debt snowball method: the method step by step.
• Debt payoff calculator: the same planner with all four strategies.

FAQ

How does the debt snowball work?

You list your debts from the smallest balance to the largest and pay the minimum on all of them. Any extra money goes to the smallest one. When it is paid off, you add its minimum to the extra and attack the next-smallest balance. The payment keeps growing until the last debt is gone.

Does the debt snowball ignore interest rates?

Yes. The order depends only on balance. Ramsey Solutions says to ignore interest rates when you list your debts. This calculator uses the APR only to break a tie between two equal balances, and of course to charge interest each month. If rates matter more to you than quick wins, switch the strategy to avalanche.

Does the debt snowball cost more than the avalanche?

Usually a little, sometimes nothing. Avalanche sends the extra to the highest rate first, so it tends to save interest. When your smallest debts also have your highest rates, both methods pick the same order and cost the same. The comparison table above shows the exact difference for your own debts.

Should my mortgage be in the snowball?

Ramsey Solutions’ snowball covers all debt except your house. A mortgage usually has the largest balance, so it would land last anyway and keep the plan running for years. Many people run a snowball on consumer debt, then use the mortgage payoff calculator separately once that is done.

What happens to the minimum payment when a debt is paid off?

It stays in your budget. The calculator holds your monthly total fixed at your starting minimums plus your extra, so the freed minimum rolls onto the next debt. If a debt is paid off partway through a month, the money left over goes to the next debt that same month.