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Free · Baby Steps · Debt snowball

Dave Ramsey calculator

Plan your Dave Ramsey debt snowball: smallest balance first, minimums on the rest, and roll payments forward as each debt clears. Get your debt-free date.

Strategy
Choose your payoff method
Your debts
4 debts · Total: $35,800
53% utilization
63% utilization
$200
Applied on top of minimum payments to accelerate the snowball
Debt-free in
3y 11m
Interest paid
$4,815
Total paid back
$40,615
Comparison
Snowball vs Avalanche
❄️ Snowball
Time:3y 11m
Interest:$4,815
🏔️ Avalanche
Time:3y 11m
Interest:$4,730
💡 Avalanche saves you $85 in interest, but snowball gives faster psychological wins.
Payoff order
When each debt disappears
Debt payoff chart with 4 debts. Longest payoff: Student loan in 3y 11mo. Total interest paid across all debts: $4,816.Horizontal bar chart showing months until each debt is fully paid off. Hover for individual debt details.Store credit4moCredit card1y 7moCar loan2y 6moStudent loan3y 11mo0mo9mo19mo28mo38mo47mo

Your action plan

Personalized insights based on your numbers above

A 0% balance transfer card could save thousands

With at least one debt above 18% APR, a 0% balance transfer (typically 12-21 months promo) could save $1,926+ in interest. Watch the 3-5% transfer fee and pay off before the promo ends.

Pay off $50k credit card debt →

4 debts? Snowball wins on momentum

With 4 debts, snowball method (smallest balance first) creates 4 quick wins to build momentum. Avalanche saves slightly more interest but has higher dropout rates. Behavior beats math.

Snowball vs avalanche →

When debt-free, redirect $200/mo to investing

The discipline that paid off $35,800 is worth more than the debt freedom itself. $200/month invested at 8% for 20 years becomes $1,098+. Turn the snowball into a wealth machine.

Compound interest calculator →

Dave Ramsey's 7 Baby Steps

  1. Baby Step 1: $1,000 starter emergency fund
  2. Baby Step 2: Pay off all debt (except mortgage) using the debt snowball
  3. Baby Step 3: 3–6 months of expenses in fully-funded emergency fund
  4. Baby Step 4: Invest 15% of household income into retirement
  5. Baby Step 5: Save for kids' college
  6. Baby Step 6: Pay off the home mortgage early
  7. Baby Step 7: Build wealth and give generously

The debt snowball — Ramsey's signature method

List debts smallest to largest, ignore APR. Pay minimums on all except the smallest — attack that with everything extra you can. When it clears, roll its full payment into the next- smallest debt. The "snowball" grows as you crush each debt.

The snowball isn't mathematically optimal — avalanche (highest-APR-first) saves more interest. Ramsey's bet: psychological momentum from quick wins keeps you in the fight long enough to finish, while avalanche followers often quit. Empirical studies (Kellogg, 2016) found snowball completers do finish at higher rates.

Snowball execution at $500/month extra

DebtBalanceMinCleared by month
Medical bill$600$502
Store card$1,200$354
Credit card A$3,500$9510
Credit card B$5,800$13019
Auto loan$9,000$22032

~32 months ($20k debt cleared, ~2.7 years to debt-free).

Dave Ramsey Calculator FAQ

What is Dave Ramsey's debt snowball?

Pay minimums on all debts except the smallest. Attack the smallest with every extra dollar. When it clears, roll its full payment (minimum + extras) into the next-smallest. Each cleared debt accelerates the snowball.

Why does Ramsey ignore interest rates in the snowball?

He argues motivation matters more than math. Quick wins from killing small debts keep you committed. Studies show snowball followers complete debt payoff at higher rates than avalanche followers, even though avalanche saves more interest on paper.

Should I follow all 7 Baby Steps in order?

Mostly yes, with one common adjustment: capture your 401(k) employer match during Baby Step 2 (the debt-payoff step), because it's free money and not getting it costs more than the interest you'd save. Ramsey purists disagree; the math supports the modification.

Does the debt snowball include the mortgage?

No — Baby Step 2 explicitly excludes the mortgage. Mortgage payoff is Baby Step 6, after you've built emergency fund, started retirement saving, and funded college. Treating it separately from consumer debt is one of Ramsey's core moves.

How long do Dave Ramsey's baby steps take?

Median completer: 18–30 months for Baby Steps 1–3, then steady ongoing for 4–7. The 'debt-free scream' typically comes 2–3 years in. Some households finish in under a year (small debt + big income); some take 5+ years.

Is the Dave Ramsey method the best approach?

It's a good approach, not necessarily the optimal one. Pros: simple rules, motivating quick wins, conservative on debt. Cons: ignores employer match early on, opposes credit cards even responsibly used, conservative investment assumptions (12% average that's hard to actually hit).

Related calculators

Debt snowball calculator
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Emergency fund calculator
Baby Step 3 in detail.
Snowball method explained
Method deep-dive.