The debt snowball is a simple way to pay off several debts: pay the minimum on everything, then put every extra dollar on the smallest balance first. When it’s gone, roll its whole payment into the next smallest. This calculator lays out your snowball in order and shows the month you’ll be debt-free.
Debt snowball calculatorList your debts and what you can pay each month. We’ll order them smallest balance first and show when each one is gone.
Your debts
Debt-free by
Total interest
First debt gone
Your snowball, in order
Timeline
How the debt snowball works
- List your debts from smallest balance to largest. Ignore the interest rates for now. (If two balances are the same, the calculator puts the higher rate first.)
- Pay the minimum on every debt, every month. Missing a minimum can bring fees and hurt your credit score.
- Put everything extra on the smallest debt. Your total monthly amount minus all the minimums goes to debt #1.
- Roll the payment forward. When debt #1 is paid off, add its full payment to the minimum on debt #2. The payment grows with each debt you clear, like a snowball rolling downhill.
- Keep the total the same until you’re done. The snowball only works if the money freed up goes to the next debt, not back into spending.
A worked example
The calculator starts with three common Canadian debts and $450 a month to pay them:
- Visa: $850 at 20.99%, minimum $26
- Store card: $2,200 at 29.99%, minimum $66
- Line of credit: $6,500 at 9.7%, minimum $130
The minimums add up to $222, so $228 a month is extra. With the snowball:
- Visa is the smallest, so it gets the extra. It’s gone in 4 months.
- Its payment rolls onto the store card, which is paid off at month 11.
- Now the whole $450 goes to the line of credit, which is paid off at month 25.
Total interest: about $1,328. Paying only the minimums would take about 6 years and cost about $4,869 in interest.
Paying the highest rate first (the avalanche method) would start with the store card. With these debts, it saves under $60 in interest and finishes the same month. But the first debt wouldn’t be gone until month 9 instead of month 4.
Snowball or avalanche?
Both methods pay the same total each month. They only differ in which debt gets the extra money.
| Snowball | Avalanche | |
|---|---|---|
| Extra money goes to | Smallest balance | Highest interest rate |
| Total interest | Same or a bit more | Lowest |
| First debt gone | Usually sooner | Can take longer |
| Best for | Staying motivated with quick wins | Paying the least overall |
The gap is small when your rates are close together. It grows when your biggest balance also has the highest rate. The best method is the one you’ll stick with. To see both results with your own numbers, use our debt repayment calculator.
Tips to make your snowball roll faster
- Stop adding to the debts you’re paying off. New charges shrink the snowball. Put the cards away until the plan is done.
- Raise your monthly amount when you can. A raise, tax refund or side income can go straight to the current target debt.
- Ask your bank about a lower rate. A lower rate on any debt means more of each payment goes to the balance.
- Know your interest cost. Our credit card interest calculator shows what one card costs you each month.
- See what minimums alone would cost. Try our minimum payment calculator to see why paying more than the minimum matters.
- Get free help if you’re stuck. Non-profit credit counselling agencies in Canada can help you build a budget and talk to lenders.
Frequently asked questions
What is the debt snowball method?
It’s a way to pay off several debts by clearing the smallest balance first while paying the minimum on the rest. Each time a debt is paid off, its payment moves to the next smallest debt.
Does the snowball method save money?
It saves a lot compared with paying only the minimums. Compared with paying the highest interest rate first, it usually costs a little more in interest. In our example, the difference was under $60.
Why do people choose the snowball if the avalanche costs less?
Paying off a whole debt early feels like progress. Fewer bills to track can make it easier to keep going, and sticking with a plan matters more than a small interest difference.
Can I include a line of credit, car loan or student loan?
Yes. Enter any debt with a balance, an interest rate and a monthly minimum payment.
What if my monthly amount doesn’t cover the minimums?
The calculator will ask you to raise it. Missing minimums can lead to fees and hurt your credit score. If you can’t cover them, talk to your lender or a non-profit credit counsellor.
Does the calculator account for minimum payments going down?
No. It uses the minimum you enter for every month. On credit cards, the required minimum often drops as the balance falls, but the snowball works best if you keep paying the same amount anyway.
Related reading
- Credit card payoff calculator: the payment you need to clear a card by a date
- Consumer proposal calculator: estimate a proposal payment
- Debt repayment calculator: snowball and avalanche side by side
- Credit card interest calculator: interest per month and payoff time for one card
- Minimum payment calculator: what paying only the minimum costs
- All calculators
- Debt-to-income ratio calculator: how lenders see your debt
How we checked: We built this calculator ourselves. Each month it adds interest (annual rate divided by 12) to every balance, pays each minimum, then puts the rest of your monthly amount on the smallest remaining balance. We re-ran the worked example in a separate script and got the same payoff months and interest. Results are estimates: real interest is charged daily, and card minimums change with your balance. This page doesn’t recommend any lender or product. Last checked October 2026.