Debt Paydown Engine

Leave blank to use the default: the greater of 2 percent of the balance or 25 dollars. The active formula always shows below.

0 percent of this limit is in use.

Popularized by Dave Ramsey as a behavioral momentum method that clears the smallest balance first.

Every month you pay each minimum, then send everything left to the card with the smallest balance. When it reaches zero, its payment rolls into the next smallest.

Tradeoff: It can cost more total interest than clearing the highest rate first, because rate is ignored in the ordering.

Three cards: 2000 at 12 percent, 5000 at 22 percent, 8000 at 18 percent, with 800 a month. Snowball clears the 2000 card first for an early win, then the 5000, then the 8000.