Debt Snowball Calculator
This debt snowball calculator shows when you will be free of several debts if you pay a little more than the minimums every month. It compares the snowball method (smallest balance first) with the avalanche method (highest rate first) and reports the time and interest.
Source: Wikipedia – Debt snowball method (snowball and avalanche methods). Updated: .
How it is calculated
When paying down debt, you make the minimum payment on every debt and put each extra payment on one single debt. When it is cleared, its whole payment moves to the next one – accelerating like a rolling snowball.
Snowball or avalanche?
- Avalanche method: you pay off the debt with the highest interest rate first. It saves the most interest on paper and is never more expensive than the alternative.
- Snowball method: you start with the smallest balance. First debts disappear early, which keeps motivation up. A study of consumer debt (Gal and McShane, 2012) found that people who fully closed individual accounts were more likely to clear all their debts later.
The calculator shows both so you can weigh cost against benefit: often the difference is a few percent of the interest.
How it is calculated
Each month interest = balance × annual rate ÷ 12 is added first, then all minimums and the extra go to the debt with the highest priority. A finished debt passes on its payment, so the total monthly budget stays the same. To consider consolidating as well, use the debt consolidation calculator; the course of a single loan is shown by the loan calculator.
Frequently asked questions
What is the debt snowball method?
You pay the minimum on all debts and put every extra amount on the debt with the smallest balance. When it is gone, its payment is added to the next smallest debt.
What is the debt avalanche method?
The same principle, but the extra payment goes first to the debt with the highest interest rate. On paper it saves the most interest and gives the shortest total time.
Which method is better?
Mathematically the avalanche, because it removes the most expensive interest first. The snowball can motivate better because single debts vanish quickly. The calculator shows what that costs you in interest.
How much extra should I pay?
As much as your budget can sustain without taking on new debt. Even 50 more a month shortens the term noticeably; the calculator shows the effect at once.
What if the minimums do not cover the interest?
Then the balance does not fall and the debt grows. Raise the payment or the extra, or look for free debt advice before things get worse.
Sources and legal basis
- Wikipedia – Debt snowball method (snowball and avalanche methods)
- Gal, D. & McShane, B. B. (2012): Can Small Victories Help Win the War? Evidence from Consumer Debt Management. Journal of Marketing Research 49(4)
As of: · Editorial policy
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