Calculate debt payoff timeline using the snowball method. Free online debt snowball calculator with formula, examples, and FAQ for debt freedom.
The debt snowball method, popularized by Dave Ramsey, focuses on paying off debts from smallest to largest balance regardless of interest rate. You make minimum payments on all debts and put any extra money toward the smallest balance. Once the smallest debt is paid, you redirect its payment to the next smallest, creating a "snowball" effect. This method provides psychological wins that keep you motivated.
Pay minimums on all debts → Apply extra to smallest balance → When paid, redirect to next smallest → Repeat until debt-freeThe snowball method is behavioral, not mathematical. While the avalanche method saves more in interest, the snowball's quick wins increase the likelihood of sticking with the plan. Each debt paid off frees up its minimum payment to attack the next debt, accelerating the payoff timeline as you progress.
| Input | Output |
|---|---|
| Debt1: $5,000 ($150/mo), Debt2: $15,000 ($300/mo), Extra: $200/mo | Payoff in ~30 months (2.5 years) |
| Debt1: $2,000 ($80/mo), Debt2: $8,000 ($200/mo), Extra: $300/mo | Payoff in ~19 months (1.6 years) |
| Debt1: $3,000 ($100/mo), Debt2: $10,000 ($250/mo), Extra: $500/mo | Payoff in ~17 months (1.4 years) |