Debt Snowball Calculator

Frequently Asked Questions

What is the debt snowball method?

The debt snowball is a payoff strategy where you pay minimums on all debts and put any extra money toward the smallest balance first. When that debt is eliminated, you roll its full payment into the next smallest. The "snowball" grows as each debt is paid off.

Is the snowball method better than the avalanche?

The avalanche method (highest interest rate first) saves more money mathematically. The snowball method saves less in total interest but produces faster early wins that help maintain motivation. Research shows people are more likely to stay the course with the snowball method, making it more effective in practice for many borrowers.

How much extra should I put toward debt each month?

Any amount above the total minimum payments accelerates payoff. Even $50–$100 per month has a significant compounding effect on smaller debts. The most impactful move is to free up cash by reducing discretionary expenses and redirecting it entirely to debt.

Should I include my mortgage in the debt snowball?

Typically, no. The snowball is best applied to consumer debts with higher interest rates — credit cards, personal loans, car loans, and student loans. A mortgage is long-term, tax-deductible in many cases, and usually has the lowest rate of all your debts.

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