Debt Snowball Calculator
Calculate how fast you can become debt-free using the snowball method -- targeting the smallest balance first.
चुकाने के महीने
51 months
Months to Pay Off vs Total Monthly Payment
सूत्र
## Debt Snowball Method Popularized by Dave Ramsey, the snowball method pays off debts from **smallest balance to largest**. ### How It Works 1. List debts from smallest to largest balance 2. Make minimum payments on everything 3. Throw all extra money at the smallest debt 4. When the smallest is gone, roll that payment into the next 5. The payment amount "snowballs" as each debt is eliminated ### Why It Works Psychologically Quick wins provide motivation. Seeing debts disappear early keeps you committed to the plan.
हल किया गया उदाहरण
$30,000 total debt across 5 accounts at 15% average, paying $800/month.
- 01Monthly rate = 15% / 12 = 1.25%
- 02Months to payoff = -ln(1 - $30,000 x 0.0125 / $800) / ln(1.0125) = 49 months
- 03Total paid = $800 x 49 = $39,200
- 04Total interest = $39,200 - $30,000 = $9,200
- 05First small debt paid off in approximately 3 months
अक्सर पूछे जाने वाले प्रश्न
Does the snowball method cost more than the avalanche?
Usually yes, because you may leave higher-rate debts untouched longer. The extra interest cost is typically a few hundred to a few thousand dollars, depending on your debts. Many people consider this a worthwhile price for the motivation boost.
Can I combine snowball and avalanche?
Yes. Some people use a hybrid: start with the snowball to get quick wins, then switch to the avalanche once they have momentum. Or group debts with similar rates and tackle the smallest first within those groups.
What about debts with the same balance?
When two debts have similar balances, pay off the one with the higher interest rate first. This combines the psychological benefit of the snowball with the mathematical advantage of the avalanche.
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