How the debt snowball method works
The debt snowball is a debt payoff strategy popularized by Dave Ramsey. You list all your debts smallest-to-largest by balance, pay minimums on everything, and throw every extra dollar at the smallest one. When that debt is gone, its old minimum payment rolls to the next smallest — your "snowball" gets bigger every time you knock one out.
Why not target the highest interest rate first?
The debt avalanche (highest-rate-first) saves slightly more interest on paper. But personal finance is personal. The snowball wins for most people because of psychology — you see real wins faster, which keeps you motivated. A strategy you stick with beats a theoretically optimal one you quit.
What "extra payment" means here
Your extra payment is applied to the current target debt (smallest balance) on top of its minimum payment. Once that debt is paid off, the freed-up minimum payment plus the extra all roll to the next debt. That's the snowball effect — the payment keeps growing even though you're not adding more from your pocket.
This calculator assumes fixed interest rates and constant minimum payments. Real minimums may change as balances drop. Use this for planning purposes and confirm details with your lenders.