Debt Snowball Calculator

1. List the balances of the debts you want to clear, separated by spaces or commas.
2. List the interest rates and minimum payments in the same order.
3. Add any extra payment you can make each month and pick snowball or avalanche.
4. Read your debt-free month, total interest and what the other method would cost.

What each result means:

The debt snowball is a repayment plan for people with several debts. You pay the minimum on everything, then put every extra dollar toward the smallest balance. When that debt is gone, its payment rolls into the next smallest, and the amount you throw at each target grows like a snowball rolling downhill.

Its strength is psychological. Clearing a small balance within a few months gives a quick win and fewer bills to track, which helps many people stick with the plan. The trade-off is that it ignores interest rates, so it can cost more than the alternative.

That alternative is the debt avalanche, which targets the highest interest rate first. It is mathematically the cheapest order, and this calculator runs both so you can see the gap. If you are considering one new loan to replace your debts instead, the debt consolidation calculator compares that route.

It simulates your debts month by month, with a fixed total budget equal to all minimum payments plus your extra amount.

1. Add a month of interest to every debt that still has a balance.
2. Pay the minimum on each debt, or the full balance if it is smaller.
3. Send whatever is left of the budget to the target: smallest balance for snowball, highest rate for avalanche.
4. When a debt reaches zero, its minimum stays in the budget and flows to the next target.
5. Repeat until every balance is paid, counting months and interest.

Because the total budget never drops, each cleared debt speeds up the rest. The target order is set from your starting balances or rates.

Say you have three debts: a 9,000 credit card at 24 percent with a 270 minimum, a 1,500 loan at 12 percent with a 45 minimum, and a 4,000 store card at 19 percent with a 100 minimum. You can add 150 a month, for a budget of 565.

With the snowball, the 1,500 loan goes first, then the 4,000 card, then the 9,000 card. You are debt free in about 36 months and pay about 5,481 in interest.

The avalanche attacks the 24 percent card first. It finishes in about 35 months with about 4,866 of interest, saving around 615. Paying only the minimums, the same debts would take far longer, which shows how much a steady extra payment matters. When the smallest balance also has the highest rate, both methods follow the same order and cost exactly the same.

Both methods use the same budget and roll payments forward. They differ only in which debt they target.

Research on consumer behaviour suggests quick wins help people persist, so the snowball can succeed where a cheaper plan is abandoned. If the interest gap shown above is small, motivation may be worth it; if it is large, the avalanche deserves a hard look.

Extra Payment

The single biggest lever. Even a modest extra amount each month can cut years and thousands in interest.

Interest Rates

High-rate cards grow fastest. The wider the spread between your rates, the more the avalanche saves.

Balance Sizes

When your smallest debts also carry high rates, the two methods converge.

Minimum Payments

Minimums that barely exceed interest leave little room for progress until the budget rolls forward.

New Spending

Any new charges add to the balances and push the debt-free date back.

Building a Payoff Plan

Turn a pile of debts into a clear order and a target date.

Choosing a Method

See in money terms what the extra motivation of the snowball costs compared with the avalanche.

Sizing an Extra Payment

Test 100, 250 or 500 extra to find a pace that fits your budget.

Tracking Progress

Rerun with updated balances every few months to stay on course.

1. Mixing Up the Order of Inputs

Balances, rates and minimums must line up debt by debt, or the plan will be wrong.

2. Cutting the Payment When a Debt Is Cleared

The method only works if freed-up minimums stay in the budget.

3. Skipping an Emergency Fund

Without a small cushion, one surprise bill can go straight back on a card.

4. Adding Thousands Separators

Type 9000, not 9,000, so each number is read correctly.

5. Ignoring Promotional Rates

A 0 percent offer that ends will change the rate partway through, which this simple model does not follow.

The simulation is precise for fixed rates and a steady budget, but real accounts have extra wrinkles.

You pay minimums on all debts and put every extra dollar on the smallest balance. Once it is paid, you roll its payment into the next smallest until everything is gone.

The avalanche targets the debt with the highest interest rate first instead of the smallest balance. It minimises the total interest you pay.

The avalanche always costs the same or less in interest. The snowball often gives faster early wins, which can help people stay on track. This calculator shows the cost difference.

It depends on your debts, but even 100 to 200 extra a month often cuts years off the plan because the extra money compounds as payments roll forward.

Most snowball plans leave out a mortgage because it is large, low rate and long term. Focus on cards, personal loans, car loans and medical bills.

Type the balances in one box, the rates in the next and the minimums in the third, all in the same order and separated by spaces or commas.

When your smallest balance also has the highest rate, snowball and avalanche pick the same order, so months and interest match.

No. It assumes you stop adding to the debts. Any new spending will lengthen the payoff time.

No. The calculation runs in your browser, and nothing you enter is sent anywhere unless you Save a result, which stays on this device only.

• How to get out of debt (Federal Trade Commission).
• Debt-snowball method (Wikipedia).
• Debt snowball method (Investopedia).
• Paying down debt: small victories (Harvard Business Review).