Debt Snowball Calculator
Calculate your debt payoff timeline using the psychologically motivating debt snowball method. Pay minimum payments on all debts, then put any extra money toward the debt with the smallest balance. This method builds momentum with quick wins.
Amount you can pay above minimum payments each month
Debt Accounts (Smallest Balance First)
Payoff Summary
Total Debt:
$0.00
Total Minimum Payments:
$0.00
Extra Payment:
$0.00
Time to Pay Off:
0 months
Interest Analysis
Total Interest Paid:
$0.00
Interest as % of Debt:
0.00%
Total Amount Paid:
$0.00
Payoff Order
Calculate to see the payoff order
The Debt Snowball Method Explained
The debt snowball method is a psychologically motivating approach to debt repayment. By focusing extra payments on the smallest balance first, you create momentum with quick wins that keep you motivated throughout the payoff process.
How the Snowball Method Works
Step-by-Step Process
- List all debts by balance (smallest first)
- Pay minimum payments on all debts
- Put any extra money toward smallest debt
- When smallest debt is paid off, roll payment to next smallest
- Continue until all debts are eliminated
Why It Works
- Creates psychological momentum
- Provides frequent wins and motivation
- Easy to understand and follow
- Builds positive habits and confidence
Advantages
- Highly motivating with quick wins
- Simple to implement and track
- Works well for behavioral change
- Easy to explain to others
Potential Drawbacks
- May pay more interest overall
- Mathematically less optimal
- Requires strong self-discipline
- Slower payoff for high-interest debt
Snowball vs Avalanche Method
| Aspect | Snowball Method | Avalanche Method |
|---|---|---|
| Focus | Smallest balance first | Highest interest rate first |
| Best For | Psychological motivation | Mathematical optimization |
| Interest Savings | Less optimal | Maximum |
| Time to First Payoff | Shorter | Longer |
| Motivation | Emotional | Logical |
Snowball Method Example
Sample Debt Payoff Scenario
Debts (Ordered by Balance)
| Debt | Balance | Rate | Min Payment |
|---|---|---|---|
| Medical Bill | $500 | 0% | $50 |
| Credit Card A | $2,000 | 22% | $60 |
| Credit Card B | $5,000 | 19% | $125 |
Payoff Strategy
- Pay minimums: $50 + $60 + $125 = $235
- Extra payment of $200 goes to Medical Bill
- Total payment to Medical Bill: $250/month
- Medical Bill paid off in ~2 months
- Roll $250 to Credit Card A, and so on
Implementing the Snowball Method
Getting Started:
- List all debts by balance (smallest first)
- Calculate minimum payments
- Determine extra payment amount
- Set up automatic minimum payments
Staying Motivated:
- Celebrate each debt payoff
- Track progress visually
- Share progress with others
- Reward yourself for milestones
Tools and Resources:
- Use debt payoff calculators
- Create a debt payoff spreadsheet
- Join online support communities
- Use budgeting apps
Common Pitfalls:
- Getting discouraged by slow progress
- Adding new debt during payoff
- Not celebrating small wins
- Losing momentum after first payoff
Key Takeaways for Debt Snowball
- The snowball method focuses on psychological motivation with quick wins
- Pay minimum payments on all debts, then focus extra payments on smallest balance
- This method works best when you need frequent motivation and encouragement
- Celebrate each debt payoff to maintain momentum throughout the process
- Combine snowball with budgeting to maximize extra payment amounts
- Consider your personality - if you prefer logic over emotion, avalanche might be better
- Consistency is key - stick to the plan even when progress seems slow
- The snowball method builds confidence and positive habits along the way