Snowball vs Avalanche

Debt Snowball Calculator

List your debts, add an extra monthly amount, and see the snowball plan — smallest balance first, popularized by Dave Ramsey's Baby Step 2 — with months to debt-free and a side-by-side avalanche comparison.

100% FreePayoff Order & DatesInterest Comparison

Your Debts

Enter each debt's balance, minimum payment, and APR (0 for interest-free debts)

Name

Balance ($)

Min. payment ($)

APR (%)

Extra per month ($)

How the Snowball Rolls (Worked Example)

Take three debts: a $1,200 medical bill ($50 minimum, 0%), a $2,500 credit card ($75 minimum, 22%), and a $9,800 car loan ($310 minimum, 7%), with $200 extra each month. Snowball order is medical → card → car. The medical bill takes the $200 extra plus its $50 minimum and dies in about 5 months; now $250 rolls onto the card ($325/month total), killing it around month 13; then the car takes $635/month. Every payoff makes the next one faster — that acceleration is the psychological engine of the method.

Snowball vs Avalanche: What the Difference Really Costs

Avalanche (highest APR first) always wins on paper. But the gap depends on how different your rates are and how long the plan runs: with rates clustered between 15–25%, snowball typically costs only a few hundred dollars more on a multi-year plan; with a 29% card next to a 3% loan, the gap widens sharply. This calculator runs both strategies on your exact debts and prints the dollar difference — so the choice between motivation and math is an informed one, not a guess.

Three Rules That Keep a Payoff Plan Alive

Stop adding debt — the snowball only works if balances aren't refilling behind it; freeze or delete the cards being paid off.
Keep a starter emergency fund — $1,000 set aside (Baby Step 1) so a flat tire becomes an inconvenience, not new credit-card debt.
Automate the rolled payment — when a debt dies, immediately redirect its full payment to the next target before the money dissolves into spending.

Frequently Asked Questions

What is the debt snowball method?

You order debts by balance, smallest first, ignoring interest rates. Pay minimums on everything and throw every spare dollar at the smallest debt; when it dies, its payment rolls into the next one. The method — Baby Step 2 in Dave Ramsey's plan — trades a little math efficiency for fast, motivating wins.

What's the difference between snowball and avalanche?

Snowball targets the smallest balance; avalanche targets the highest APR. Avalanche is mathematically optimal — it always minimizes total interest — but the difference is often smaller than expected (this calculator shows the exact dollar gap for your debts), and snowball's quick wins help many people actually stick with the plan.

How much faster do I get debt-free with extra payments?

It compounds: the extra amount plus every freed-up minimum attacks the next debt. In the default example ($13,500 across three debts, $200 extra), the plan finishes years earlier than paying minimums alone — minimum-only payments on a 22% card can take decades.

Should my mortgage be in the snowball?

Ramsey's plan excludes the mortgage from Baby Step 2 (it gets its own later step). Practically, mortgages are large, low-rate, and often tax-advantaged, so most payoff plans list only consumer debts here — see our Mortgage Payoff Calculator for the house.

Do 0% promotional balances change the order?

Under strict snowball, no — order is by balance alone. But a 0% promo that expires into 25%+ deserves attention before the promo ends. A common hybrid: snowball order, except clear expiring promos before their deadline. The avalanche comparison here shows what rate-ordering would save.

Where does the extra monthly amount come from?

Typically a written budget (zero-based budgeting in Ramsey's system), selling unused items, or temporary extra income. Even $50/month materially moves the debt-free date on small balances — try different extra amounts and watch the timeline shift.

Dave Ramsey Investment Calculator

Project retirement balances with Dave Ramsey's 12% benchmark plus conservative and aggressive scenarios.

Mortgage Payoff Calculator

Calculate how much you can save by paying off your mortgage early with extra payments. Get detailed amortization and savings analysis.

Amortization Calculator

Monthly payment, total interest, and a full year-by-year amortization schedule for any loan — with extra-payment payoff comparison.

Disclaimer: This calculator is for general educational purposes only and is not financial, investment, tax, or legal advice. Results are estimates; consult a qualified professional before making financial decisions.