Debt Snowball Calculator
See when you could be debt-free and how much interest you'd pay, using the snowball (smallest balance first) or avalanche (highest rate first) method.
How the calculator works
- Each month, interest is added to every balance (APR ÷ 12).
- Every debt gets its minimum payment.
- The extra payment goes to the target debt: the smallest balance (snowball) or the highest rate (avalanche).
- When a debt is paid off, its minimum isn't spent elsewhere. It joins the extra payment for the next target, so your total monthly payment stays the same until everything is paid.
The “minimums only” line shows the alternative: just the minimum on each debt, and when one is paid off, that money is no longer put toward debt.
It's an estimate: lenders usually calculate interest daily, and rates and minimums can change. Use it to compare plans, not as an exact payoff date.
Worked example
Three debts and $200 a month on top of the minimums ($515 a month in total):
| Debt | Balance | APR | Minimum |
|---|---|---|---|
| Store card | $900 | 17.99% | $30 |
| Credit card | $3,200 | 26.99% | $90 |
| Car loan | $6,500 | 7.9% | $195 |
| Plan | First debt paid off | Debt-free | Total interest |
|---|---|---|---|
| Snowball | Store card, month 5 | 24 months | $1,430.86 |
| Avalanche | Credit card, month 13 | 24 months | $1,347.46 |
| Minimums only | Car loan, month 38 | 73 months | $4,473.60 |
Both methods finish in the same month here, and the avalanche saves $83.40 in interest. The snowball pays off its first debt eight months sooner, which is the quick win some people need to keep going. Paying only the minimums, with no extra payment and without moving a paid-off debt's minimum to the next one, takes about four more years and costs about $3,000 more in interest.
Making room for the extra payment
- Find it per paycheck. $200 a month is about $92 from each biweekly paycheck ($200 × 12 ÷ 26 = $92.31).
- Use the extra paychecks. In a three-paycheck month, the third paycheck's usual bill share can go straight to the target debt.
- Stop new balances first. A payoff plan only works if the cards aren't being used for new spending at the same time.
- Keep a small emergency fund. Without one, the next car repair goes back on a card.
If you are behind on payments or dealing with collectors, the CFPB's debt collection resources explain your rights and options.
Frequently asked questions
What is the debt snowball method?
List your debts from smallest balance to largest. Pay the minimum on every debt and put every extra dollar on the smallest. When it is paid off, add its minimum to the payment on the next one, so the payment grows like a snowball.
What is the debt avalanche method?
The same idea, but the extra money goes to the debt with the highest interest rate first. It usually costs less interest overall; the snowball usually gives you the first paid-off debt sooner.
Which method is better?
The avalanche usually saves money; the snowball gives quicker wins that help some people stick with it. The best plan is the one you will keep paying every month.
Why is my real payoff date different?
Lenders calculate interest daily and may change rates or minimums. The calculator estimates with monthly interest and fixed minimums, so treat its dates as a plan, not a promise.
Sources
- CFPB, Debt collection
- CFPB, What is a debt-to-income ratio?
- FDIC, Money Smart