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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.

Baby Steps math reality check · Snowballr Research · /research/debt-snowball-vs-avalanche-1000-scenarios
Step 2 (debt snowball) costs ~$1,200 more vs avalanche on median profile
Our 1,000-profile simulation found snowball pays ~$1,200 more interest than avalanche on the median multi-debt household. Ramsey's defense is behavioral — early wins prevent quitting — but the numerical cost is real and worth knowing as a calculator user.
We follow the 7 Baby Steps order strictly because that's what people search for, but we show the interest delta vs avalanche openly instead of pretending the methods are equivalent.
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

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 easier for some people to follow. A 2012 Kellogg summary of Gal and McShane's research linked account closures with completion among debt-settlement clients; that setting does not establish a completion result for every repayment plan.

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 emphasizes visible milestones because quick wins may make a plan easier for some people to follow. The avalanche minimizes interest under fixed assumptions; research in a debt-settlement setting does not guarantee a completion advantage for every repayment plan.

Should I follow all 7 Baby Steps in order?

Many people review the 401(k) match during Baby Step 2, but vesting, taxes, fees, liquidity and essential payments still matter. Compare the plan contribution with your debt terms rather than assuming one order fits everyone.

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
The core snowball math.
Debt payoff calculator
All methods compared.
Emergency fund calculator
Baby Step 3 in detail.
Snowball method explained
Method deep-dive.

Methodology and editorial standards

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