Debt Snowball Calculator
By The Dime Daily Editorial Team · Published June 2025
Build your personalized debt payoff plan using the debt snowball method. See exactly when each debt disappears and how much interest you'll save.
Skip the fluff — TL;DR
The debt snowball gives you quick wins. List all your debts, pay minimums on everything, and throw everything extra at the smallest balance first. When it's gone, attack the next one.
💰 Dime's Take
The debt snowball isn't mathematically optimal — the avalanche (highest interest first) saves more money. But the snowball wins in practice because people actually stick to it. Getting rid of a debt completely is motivating in a way that slowly shrinking a high-APR balance isn't. Use whichever method you will actually finish.
Frequently asked questions
The debt snowball method has you pay debts from smallest balance to largest, regardless of interest rate. When you pay off the smallest debt, you roll that payment into the next one — creating a 'snowball' of growing payments. It's not mathematically optimal, but the psychological wins of eliminating debts keep people motivated. Dave Ramsey popularized it.
The debt avalanche (highest interest first) saves more money mathematically. The debt snowball (smallest balance first) keeps more people on track psychologically. The 'best' method is the one you actually stick with. If you're good at discipline, use the avalanche. If you need quick wins to stay motivated, use the snowball.
Even an extra $50–100/month can dramatically speed up your payoff and cut interest costs. The key is consistency. A windfall (tax refund, bonus) applied to your smallest debt can be a huge momentum booster.