Use this calculator to visualize how quickly you can become debt-free using Dave Ramsey's Debt Snowball method. This strategy focuses on paying off debts from smallest balance to largest, creating momentum and psychological wins.
This is the total amount you can allocate to debt payments each month, including all minimum payments and any extra money you can find in your budget.
Specify how many individual debts you want to include in your snowball plan.
Understanding the Dave Ramsey Debt Snowball
The Debt Snowball is a debt reduction strategy popularized by financial guru Dave Ramsey. Unlike the Debt Avalanche method, which prioritizes debts by interest rate to save the most money, the Debt Snowball focuses on behavioral change and motivation.
How the Debt Snowball Works:
List All Debts: Gather all your debts (credit cards, personal loans, car loans, student loans, etc.) and list them from the smallest outstanding balance to the largest, regardless of their interest rate.
Make Minimum Payments: Pay the minimum required payment on all debts except for the smallest one.
Attack the Smallest Debt: Throw every extra dollar you can find in your budget at the debt with the smallest balance. This includes any money left over after making minimum payments on other debts, plus any additional funds you can free up (e.g., from selling items, working extra hours).
Roll the Payment: Once the smallest debt is completely paid off, take the money you were paying on that debt (its minimum payment plus any extra you were applying) and add it to the minimum payment of the *next* smallest debt. This creates a "snowball" effect, where your payments on subsequent debts grow larger and larger.
Repeat: Continue this process until all your debts are paid off.
Why It's Effective:
Psychological Wins: Paying off a debt completely, even a small one, provides a significant psychological boost. This success motivates you to keep going.
Momentum: As each debt is eliminated, the amount you can apply to the next debt grows, creating a powerful sense of momentum.
Simplicity: The method is straightforward and easy to understand, making it accessible for anyone struggling with debt.
While the Debt Snowball might cost slightly more in interest over time compared to the Debt Avalanche (which targets high-interest debts first), its strength lies in its ability to keep people motivated and on track to becoming debt-free. For many, the psychological benefit outweighs the potential extra interest paid.
How to Use This Calculator:
To use the Dave Ramsey Debt Snowball Calculator:
Total Monthly Debt Payment Budget: Enter the total amount of money you can realistically commit to paying towards your debts each month. This should include all your minimum payments plus any extra funds you can allocate.
Number of Debts: Specify how many individual debts you have. The calculator will then generate input fields for each debt.
Enter Debt Details: For each debt, provide a descriptive name (e.g., "Credit Card 1", "Car Loan"), its current outstanding balance, and its minimum monthly payment.
Calculate: Click the "Calculate Debt Snowball" button to see your estimated debt-free date and a detailed payment schedule.
This tool will help you visualize the power of the Debt Snowball and provide a clear roadmap to financial freedom.
`;
container.appendChild(debtDiv);
}
}
// Initial generation of debt inputs when the page loads
document.addEventListener('DOMContentLoaded', generateDebtInputs);
function calculateDebtSnowball() {
var totalMonthlyDebtBudget = parseFloat(document.getElementById('totalMonthlyDebtBudget').value);
var numberOfDebts = parseInt(document.getElementById('numberOfDebts').value);
var resultDiv = document.getElementById('result');
resultDiv.innerHTML = ";
if (isNaN(totalMonthlyDebtBudget) || totalMonthlyDebtBudget <= 0) {
resultDiv.innerHTML = 'Please enter a valid positive number for your Total Monthly Debt Payment Budget.';
return;
}
var debts = [];
var totalMinimumPayments = 0;
for (var i = 0; i < numberOfDebts; i++) {
var name = document.getElementById('debtName' + i).value;
var balance = parseFloat(document.getElementById('debtBalance' + i).value);
var minPayment = parseFloat(document.getElementById('debtMinPayment' + i).value);
if (isNaN(balance) || balance < 0 || isNaN(minPayment) || minPayment 0 && minPayment === 0) {
resultDiv.innerHTML = 'Debt "' + name + '" has a balance but no minimum payment. Please enter a valid minimum payment.';
return;
}
if (balance === 0 && minPayment > 0) {
// If balance is 0 but min payment is > 0, treat it as paid off or adjust min payment to 0
minPayment = 0;
}
debts.push({
name: name,
initialBalance: balance,
currentBalance: balance,
minPayment: minPayment,
isPaidOff: (balance === 0),
paymentsMade: []
});
if (balance > 0) { // Only count minimums for active debts
totalMinimumPayments += minPayment;
}
}
// Filter out debts that are already paid off (balance 0)
debts = debts.filter(d => d.initialBalance > 0);
if (debts.length === 0) {
resultDiv.innerHTML = 'All debts are already paid off! Congratulations!';
return;
}
// Sort debts by current balance (smallest to largest) for the snowball method
debts.sort(function(a, b) {
return a.initialBalance – b.initialBalance;
});
// Recalculate total minimum payments for the *active* debts after filtering
totalMinimumPayments = debts.reduce((sum, d) => sum + d.minPayment, 0);
if (totalMonthlyDebtBudget !d.isPaidOff) && totalMonths !d.isPaidOff).reduce((sum, d) => sum + d.minPayment, 0);
var availableForSnowball = totalMonthlyDebtBudget – activeDebtsMinPayments + currentSnowballAmount;
for (var i = 0; i 0) {
paymentToApply += availableForSnowball;
extraPaymentAppliedThisMonth = availableForSnowball; // Mark that snowball has been applied
}
var actualPayment = Math.min(paymentToApply, debt.currentBalance);
debt.currentBalance -= actualPayment;
totalAmountPaid += actualPayment;
currentMonthTotalPayment += actualPayment;
monthPaymentsDetail.push({
name: debt.name,
paid: actualPayment,
remaining: debt.currentBalance
});
if (debt.currentBalance = maxMonths) {
resultDiv.innerHTML = 'Calculation stopped after ' + maxMonths + ' months to prevent an infinite loop. Your current plan may take a very long time to pay off all debts. Consider increasing your monthly budget.';
return;
}
var years = Math.floor(totalMonths / 12);
var remainingMonths = totalMonths % 12;
var resultHtml = '
Debt Snowball Results
';
resultHtml += 'Time to become Debt-Free: ' + (years > 0 ? years + ' year(s) and ' : ") + remainingMonths + ' month(s)';
resultHtml += 'Total Amount Paid: $' + totalAmountPaid.toFixed(2) + ";
resultHtml += '