Debt Snowball Payoff Calculator
Snowball pays the smallest debt first regardless of rate. Once cleared, roll its payment into the next. Builds psychological momentum.
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| Payoff Order | — |
| Months to Debt-Free | — |
| Total Interest Paid | — |
| Years to Freedom | — |
The debt snowball method, popularized by Dave Ramsey, pays off the smallest debt balance first regardless of interest rate. Once that debt is gone, the payment rolls onto the next smallest. The early wins build psychological momentum that prevents quitting. Source: Ramsey Solutions Baby Step 2.
Snowball vs Avalanche Method
The competing method, debt avalanche, pays off the highest-APR debt first to minimize total interest paid. Mathematically, avalanche always wins by 5-15% in interest savings. Practically, snowball wins more often because people stick with it — a 2012 Northwestern Kellogg study found snowball completers were 30% more likely to clear all their debt vs avalanche starters. Use snowball if you struggle with discipline; use avalanche if you optimize spreadsheets and stay motivated.
How Big Should the Snowball Be?
The snowball is the extra payment above your combined minimums. $200-500/month accelerates payoff dramatically. Without extra, the snowball still rolls — when debt 1 clears, its full minimum payment moves to debt 2, then debt 2+1 minimums move to debt 3. Even with no extra cash, the avalanche effect cuts total time meaningfully vs paying minimums forever.
Common Mistakes
(1) Continuing to use the credit cards being paid off — close or freeze them. (2) Ignoring high-APR debt at the bottom — a $15k 28% APR card costs $4,200/year in interest; pay just the minimum and you might never clear it. (3) Not building a small starter emergency fund ($1,000) first — one unexpected car repair sends you back to the card and undoes progress. (4) Treating tax refunds and bonuses as fun money instead of snowball boosts.
Last updated May 2026. Sources: Ramsey Solutions — Baby Steps, CFPB — Debt Management.