Debt Snowball Calculator

The debt snowball method involves paying off your smallest debts first while making minimum payments on larger ones. Once a small debt is paid off, you roll that payment amount into the next smallest debt. This creates psychological wins and momentum, making it easier to stay motivated throughout your debt payoff journey.

The debt avalanche (paying highest interest first) saves more money mathematically. The debt snowball provides psychological wins that help you stick with the plan. Choose snowball if you need motivation; choose avalanche if you're disciplined and want to minimize interest. Both work—consistency matters more than the method.

Pay as much extra as you can afford without sacrificing emergency savings. A good target is $200-$500 extra monthly. Even $50 extra makes a difference. The key is consistency—regular extra payments compound over time. Use this calculator to see how different amounts affect your payoff timeline.

Do both simultaneously. Maintain a small emergency fund ($1,000-$2,000) while aggressively paying off high-interest debt (over 7%). Once high-interest debt is gone, build your emergency fund to 3-6 months of expenses. Low-interest debt (under 4%) can be paid slowly while you invest for higher returns.

The timeline depends on your total debt, interest rates, and monthly payments. Use this calculator to get a personalized estimate. With the snowball method and consistent extra payments, most people can become debt-free in 2-5 years, regardless of their starting amount.