Debt Snowball Calculator

The debt snowball method, popularized by Dave Ramsey, has you pay minimum payments on all debts while directing any extra money toward the debt with the smallest balance. When that debt is paid off, you "roll" that payment into the next smallest.

This builds momentum — each debt you eliminate gives you more to put toward the next one, creating a snowball effect.

Psychologically, eliminating a debt entirely — even a small one — provides motivation and a sense of progress. Research suggests that this momentum helps people stick to their debt payoff plan longer.

It's not mathematically optimal, but it is behaviorally effective for many people.

The debt avalanche pays off the highest-interest debt first, which minimizes total interest paid and is mathematically optimal. The debt snowball pays the smallest balance first for psychological wins.

For most people with similar interest rates, the difference in total interest paid is small. Choose whichever method you'll actually stick with.

When you eliminate debt, redirect those freed-up payments to your next financial priority: fully fund your emergency fund, max your employer 401(k) match, then invest the rest. The monthly cash flow you were sending to creditors can become powerful investment contributions.

The premium planner lets you model exactly this — see how debt payoff accelerates your net worth trajectory over time.