Debt Snowball Calculator
Pay debts smallest to largest, rolling each payoff into the next. See your debt-free date and total interest paid.
FAQs
What is the debt snowball method?
Pay minimums on all debts, then put EVERY extra dollar toward the SMALLEST debt first (regardless of interest rate). Once smallest is paid off, roll that payment into the next-smallest. Each payoff snowballs the available payment amount. Popularized by Dave Ramsey.
Is snowball or avalanche method better?
Mathematically, avalanche (highest interest rate first) saves more money. Psychologically, snowball (smallest debt first) gives faster wins and helps people stick with it. Studies show snowball followers actually pay off MORE debt total because they don't quit. If you're disciplined, use avalanche. If you need motivation wins, use snowball.
How much extra should I put toward debt?
As much as possible after building $1,000 emergency fund. Common goal: 20% of net income to debt payoff. Dave Ramsey recommends 'gazelle intensity' — extreme focus, sometimes 40-50% of income. The more you put, the faster the snowball rolls.
Should I stop investing while paying debt?
Dave Ramsey says yes (except 401(k) match). Many financial advisors disagree — keep contributing to 401(k) up to match (free money) and to Roth IRA for compound growth. High-interest debt (15%+) is worth pausing investments. Low-interest debt (under 6%) is usually better paid alongside investments.
Does paying off credit cards hurt my credit score?
Briefly drops 5-15 points right after (lower credit utilization causes momentary dip), then recovers in 2-3 months. Long-term: significantly raises score. Don't close paid-off accounts unless they have annual fees — keep them open and unused to maintain credit history length and total available credit.