Debt Snowball Calculator

What this calculator does

The debt snowball method pays debts from smallest balance to largest while rolling freed-up payments into the next debt. It is popular because early wins can help momentum.

Formula used

Each month interest is added to every debt, minimum payments are applied, and the extra payment goes to the smallest remaining balance. When a debt is cleared, its payment is rolled into the next balance.

How to read the result

The snowball method can be motivating, but it may cost more interest than targeting the highest APR first. Compare the result with your lender terms and budget.

Assumptions

• Models three debts.
• Assumes fixed APRs and fixed minimum payments.
• Does not include fees, missed payments or promotional rate changes.

Sources and checks

This calculator uses a standard public formula. Where rules or thresholds can change, source links are listed on the relevant page.

Frequently asked questions