Debt Snowball / Avalanche Calculator
List your debts (up to 6). We’ll simulate month-by-month payoff under each strategy.
The debt snowball explained
The debt snowball pays minimums on every debt plus throws every extra dollar at the smallest balance. When the first debt falls, you roll its payment into the next smallest — the 'snowball' grows as you go. By the last debt, you're throwing massive monthly payments at it, often finishing years faster than minimums.
Dave Ramsey popularized this approach over the mathematically-optimal avalanche method because it works with human psychology, not against it. Each paid-off account is a small victory that keeps momentum. For moderate debt loads ($20–50k), the total interest difference between snowball and avalanche is usually small — completion rate matters more.
Frequently asked questions
Snowball vs. avalanche — which is really better?
Mathematically, avalanche (highest-interest-first) saves more money. In practice, studies show people stick with snowball (smallest-balance-first) more often because quick wins reinforce the habit. Total-interest differences are usually a few hundred dollars on moderate debt — not life-changing. Pick whichever method you'll actually finish.
How much extra should I throw at the debt each month?
Every dollar above minimums accelerates the entire cascade. Even an extra $50/month creates compounding momentum: when the first debt is paid off, that minimum payment plus your extra rolls into the next debt's payment. This 'avalanche effect' is what makes the snowball feel so fast once it's rolling.
Should I pause saving to crush debt faster?
Maintain a $1,000–2,000 emergency fund even while paying off debt — otherwise any car repair or medical bill puts you right back on the cards. Beyond that baseline, high-interest debt (20%+ APR) almost always beats any realistic savings return. Lower-rate debt (under 7%) is a judgment call against your retirement savings.
What counts as 'high-interest' debt to prioritize?
Anything above 8% is generally worth accelerating. Credit cards (20–29%), payday loans (often 300%+ effective APR), and unsecured personal loans (12–30%) are top priorities. Student loans (4–7%) and mortgages (under 8%) are usually fine to pay on schedule while investing.
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