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Debt payoff strategy

Debt Snowball Calculator

Build a debt snowball plan by paying minimums on all debts and sending extra money to the smallest balance first.

Calculator

Debt Snowball Calculator

Debt snowball strategy

The snowball method prioritizes the smallest balance first. It may not minimize interest, but it can create faster visible wins because accounts close earlier.

Worked example

With three debts and $250 extra available each month, the tool applies minimum payments to every account, then sends the extra amount to the smallest remaining balance until it is paid off.

Methodology

Debts are sorted by current balance. Interest accrues monthly using APR divided by 12. Payments are allocated to minimums first, then extra cash is assigned to the active snowball target.

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Sources and review

Last reviewed: August 16, 2026.

See the calculator methodology and data sources pages.

Frequently asked questions

Does snowball save the most interest?

Not always. Avalanche usually saves more interest, but snowball may close smaller accounts sooner.

Can I enter multiple debts?

Yes. Use the balance, APR and minimum payment fields for each debt row.

What happens when one debt is paid off?

Its minimum payment rolls into the next target in the estimated payoff sequence.