Debt Snowball Calculator
The snowball: clear the smallest balance first, then roll its payment into the next. It costs more interest than the avalanche and it works, because finishing a debt is what keeps people going.
Also called: snowball method, debt payoff plan.
28 months and $74,220.34 of interest, clearing debts in this order: Debt 1, Debt 3, Debt 2. Smallest balance first, which clears a debt sooner and costs a little more interest.
An estimate, not an offer or a guarantee. Projected returns assume the rate you entered holds for the whole term, which no market does.
This is what the calculation gives for the numbers you entered. It is an estimate, not advice, and it knows nothing about your situation beyond those numbers. Rules for United States change on a published schedule; the effective date is shown on every rule-based tool.
How this is calculated
Every debt gets its minimum, and everything spare goes to the smallest balance. When it clears, its whole payment rolls onto the next smallest, so the amount attacking the debt grows each time one falls. It is not the cheapest order, and the behavioural case for it is real: the first debt disappears quickly, which is what stops people abandoning the plan in month four.
pay minimums on everything, then throw everything spare at the smallest balance- B
- Balance on each debt (currency)
- r
- Rate on each debt (decimal)
Method and limits
What it assumes
- Fixed rates and minimum payments, with no new borrowing.
What it deliberately does not model
- It does not model minimum payments that fall as balances fall, which most cards apply.
- Fees and penalties are excluded.
Formula version 1.0.0 · definition 1.0.0 · United States · Report a problem with this calculator
Frequently asked questions
- Does the snowball cost more?
- Yes, always, unless the smallest balance also happens to carry the highest rate. The gap is usually modest and the completion rate is usually higher, which is the trade.