💳 Debt Snowball Calculator

Use this debt snowball calculator to build a step-by-step payoff plan for multiple debts. Enter each balance, interest rate, and minimum payment, add an extra monthly amount, and see how quickly you can become debt-free by targeting the smallest balances first.

Debt snowball payoff results

Enter your debts and an optional extra monthly payment above, then select Calculate Debt Snowball Plan to compare paying minimums only versus a focused debt snowball strategy.

Month-by-month payoff breakdown (debt snowball)

After you calculate your debt snowball plan, this section will show a month-by-month payoff summary based on your inputs.

Debt snowball calculator inputs and key terms

These inputs mirror the information most lenders use to determine your monthly payments and interest charges. Understanding each one makes it easier to build a realistic payoff plan.

• Debt name: A label to help you identify each account, such as “Credit Card A,” “Personal Loan,” or “Medical Bill.”
• Balance: The current amount you owe on each debt, excluding any future interest charges that have not yet accrued.
• APR (%): The annual percentage rate, or yearly interest rate charged on your debt. It affects how much interest accrues each month.
• Minimum payment: The smallest amount your lender requires you to pay each month to keep the account in good standing. Paying only the minimum usually stretches out repayment and increases total interest.
• Extra monthly payment: An additional amount you choose to pay each month on top of the sum of your minimums. In the debt snowball method, this extra cash is directed to the smallest remaining balance.
• Total starting debt: The combined balances of all debts you include in the calculator.
• Debt snowball method: A payoff strategy where you keep paying minimums on all debts but focus any extra money on the smallest balance first. Once a debt is paid off, its minimum payment is added to your snowball and rolled into the next smallest debt.
• Minimum payments only scenario: A comparison case where you pay only your minimums each month and do not add any extra snowball payment.
• Total interest paid: The cumulative amount of interest charges over the life of your paydown plan. Reducing this number is a key benefit of focused strategies.
• Payoff time: The number of months it may take to reach a zero balance on all debts under each scenario.

Formulas used in the Debt Snowball Calculator

This calculator uses standard interest and payment logic along with a structured payoff order to estimate how long it may take to clear your debts under different strategies.

Monthly interest and updated balance

For each debt, interest is estimated monthly using a simple approximation:
Let:
B = starting balance for the month
APR = annual percentage rate (decimal)
r = monthly rate = APR ÷ 12
I = interest for the month
B' = balance after interest, before payments
Then:
I = B × r
B' = B + I

Minimum payments only scenario

For each month:
1. Calculate interest for each debt and update the balance to B'.
2. Apply that debt’s minimum payment (or the remaining balance if it is smaller) until all minimums have been paid or your budget is exhausted.
3. Repeat month by month until all balances reach zero or a maximum time horizon is reached.

Debt snowball scenario

Let:
MinTotal = sum of all minimum payments across your debts
Extra = extra monthly payment you choose for the snowball
Budget = MinTotal + Extra
Each month:
1. Add interest to each debt to get updated balances B'.
2. Pay each debt’s minimum payment (up to the remaining balance).
3. With any remaining budget, find the smallest remaining balance and apply as much of the leftover as possible.
4. Once a debt is paid off, its minimum payment becomes part of the snowball and is effectively added to the amount you can put toward other debts in future months.

This approach mimics a common real-world payoff strategy and highlights how redirecting freed-up minimum payments can accelerate progress, especially when combined with consistent extra payments.

Debt Snowball Calculator FAQs

• What is the debt snowball method and how does this calculator use it?
  The debt snowball method focuses on paying off the smallest balance first while keeping minimum payments on all other debts. When a debt is paid off, its old minimum payment is added to your snowball and rolled into the next smallest balance. This calculator estimates how quickly that process can lead you to being debt-free, compared with making only minimum payments.
• How is this different from the debt avalanche method?
  The debt avalanche method targets the highest interest rate first instead of the smallest balance. In many cases, the avalanche can save slightly more interest, while the snowball can provide faster psychological wins by clearing small balances sooner. This tool focuses on the snowball approach but you can approximate an avalanche by directing extra payments toward your highest-rate debt.
• How much extra should I add to my monthly debt payments?
  Even a modest extra payment—such as $25, $50, or $100 each month—can significantly reduce your payoff time and interest, especially if you stick with it. The right number depends on your budget, emergency savings, and other financial goals. You can try different extra amounts in this calculator to see how much time and interest you might save.
• Will using the debt snowball hurt my credit score?
  Paying on time and reducing your revolving balances over time generally helps your credit profile. The snowball method itself does not require closing accounts or missing payments. However, if you choose to close old credit card accounts once they are paid off, your available credit may shrink, which can affect your credit utilization ratio. Consider your broader credit goals when deciding which accounts to keep open.
• Why does the payoff time in real life sometimes differ from the calculator output?
  Lenders may calculate interest daily, use slightly different compounding rules, or change minimum payments as balances fall. Your own payment dates and any additional one-time payments you make can also shift the schedule. The calculator provides a simplified month-by-month model that is useful for planning and comparison, but actual payoff dates and totals can vary.
• Is this debt snowball calculator financial or legal advice?
  No. The tool is designed for education and planning only. It cannot account for every detail of your loans, credit agreements, or legal rights. If you are struggling with debt, facing collection activity, or considering options like consolidation, settlement, or bankruptcy, it’s important to speak with a qualified financial professional or credit counselor.