Snowball Method Debt Calculator
The debt snowball method pays the minimum on every debt and puts all the extra money on the smallest balance first. When that debt is gone, its payment moves to the next smallest, so the payment on the target grows like a snowball. Enter your debts below to see your order. Nothing you type leaves your browser.
Your debts
Add up to 10. The rows below are an example: replace them with your own numbers.
Estimates only. Assumes fixed rates, no new charges and the same minimum every month. Not financial advice, and Ledgewise is not a lender.
How does the snowball method work?
Pay the minimum on every debt, put all your extra money on the smallest balance, and when it is cleared move its payment to the next smallest. Step by step:
- List your debts from the smallest balance to the largest. Ignore the interest rate.
- Pay the minimum on every debt.
- Put all your extra money on the smallest balance.
- When that debt is cleared, add its whole payment (the minimum plus the extra) to the next smallest balance.
- Repeat until the last debt is gone.
The method was popularised by Dave Ramsey. Its appeal is behavioural: small debts disappear quickly, and each cleared debt is a visible win.
What does the snowball look like in motion?
Three debts and $200 extra a month: a store card ($1,200 at 9%, $40 minimum), a credit card ($6,000 at 26%, $150 minimum) and a car loan ($9,000 at 7%, $180 minimum). The monthly budget is $570: the three minimums ($370) plus the $200 extra.
| Order | Target debt | Payment on it | Cleared in |
|---|---|---|---|
| 1 | Store card | $240 a month | month 6 |
| 2 | Credit card | $390 a month | month 24 |
| 3 | Car loan | $570 a month | month 35 |
The payment on the target grows from $240 to $390 to $570 because each cleared debt's payment moves onto the next one. That growth is the snowball. Total interest on the way: $3,239.44.
How does snowball compare with avalanche on the same debts?
On the three debts above, avalanche finishes one month sooner and costs $302.89 less interest than snowball.
- Snowball: debt-free in 35 months, $3,239.44 interest.
- Avalanche (highest rate first): debt-free in 34 months, $2,936.55 interest.
- Here the avalanche saves $302.89. How much it saves depends on how far apart your rates are.
Both are shown side by side above. For up to ten debts and a full comparison, use the debt payoff calculator.
What are the pros and cons of the snowball method?
The snowball method trades some extra interest for quick early wins and a simple rule.
- Pro: quick early wins. The first debt is usually cleared within months.
- Pro: a simple rule, with no rate maths to keep up with.
- Con: it can cost more interest, especially when your largest rates sit on your largest balances.
- Con: if a small debt has a low rate, you spend extra money there before a costly one.
Do small extra payments still count?
Yes. Any extra money, such as a refund, a bonus or what you save on one bill, can go on the debt you are targeting. Add up what you expect to put in over a year, divide by 12, and enter it as the extra amount to see the date move.
Which other debt calculators can I use?
- Debt payoff calculator: snowball and avalanche side by side, for up to ten debts.
- Debt calculator: a plain overview of what a debt calculator does and how to read it.
- Debt repayment calculator: a year-by-year repayment timeline and what a bigger payment changes.
What do people ask about this calculator?
What is the debt snowball method?
The debt snowball method pays the minimum on every debt and sends all extra money to the debt with the smallest balance. When that debt is cleared, its whole payment moves to the next smallest balance.
Does the snowball method cost more than the avalanche method?
Usually a little more interest, because it ignores the rate. In the worked example below the snowball plan costs $302.89 more interest and finishes one month later than avalanche. The calculator shows the difference for your own debts.
What happens if two debts have the same balance?
This calculator targets the one with the higher interest rate first, then the one listed first.
Do I need to pay the minimum on every debt?
Yes. The snowball method only changes where the extra money goes. Every debt keeps getting at least its minimum.
What is debt snowflaking, and does it work with the snowball method?
Debt snowflaking means putting small, irregular bits of money on a debt as they turn up, such as a refund, a rebate or what you saved on one bill, instead of waiting for a fixed amount. It works with the snowball method: the money goes on the debt you are targeting. In this calculator, add up what you expect over a year, divide by 12, and enter it as the extra amount.
Does the calculator save or send what I type?
No. The arithmetic runs in your browser, and the amounts you enter are not sent to Ledgewise or anyone else.
Keep the plan, not just the estimate. Add each debt in Ledgewise and see the debt-free date next to your monthly budget. The free plan has no time limit.
Start freeWritten by Robert Afanu, founder of Ledgewise. About the founder.