Debt Snowball Calculator

This debt snowball calculator shows when you will be free of several debts if you pay a little more than the minimums every month. It compares the snowball method (smallest balance first) with the avalanche method (highest rate first) and reports the time and interest.

Source: Wikipedia – Debt snowball method (snowball and avalanche methods). Updated: .

One debt per line: name; balance; interest rate in % a year; minimum payment per month
amount on top of the sum of the minimum payments; 0 = minimums only
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Result

Debt-free after
29 mo. (≈ 2.4 yrs) – total interest 1,340.34
Total interest
1,340.34
Starting point
Total debt 12,700.00, monthly budget 500.00 (minimums plus extra)
Saving versus minimum payments only
1,821.67 less interest and debt-free 34 months sooner
The other method
Snowball (smallest balance first): 29 mo. (≈ 2.4 yrs), interest 1,421.67
Payoff order
No.DebtBalanceRate p. a.Paid off
1Credit card3,500.0019.9 %Month 17
2Overdraft1,200.0011.5 %Month 18
3Car loan8,000.005.5 %Month 29
Calculated with monthly interest (annual rate ÷ 12), without fees or rate changes. Payments freed by a finished debt roll into the next one. If you are overwhelmed by debt, free debt advice services can help.

How it is calculated

When paying down debt, you make the minimum payment on every debt and put each extra payment on one single debt. When it is cleared, its whole payment moves to the next one – accelerating like a rolling snowball.

Snowball or avalanche?

The calculator shows both so you can weigh cost against benefit: often the difference is a few percent of the interest.

How it is calculated

Each month interest = balance × annual rate ÷ 12 is added first, then all minimums and the extra go to the debt with the highest priority. A finished debt passes on its payment, so the total monthly budget stays the same. To consider consolidating as well, use the debt consolidation calculator; the course of a single loan is shown by the loan calculator.

Frequently asked questions

What is the debt snowball method?

You pay the minimum on all debts and put every extra amount on the debt with the smallest balance. When it is gone, its payment is added to the next smallest debt.

What is the debt avalanche method?

The same principle, but the extra payment goes first to the debt with the highest interest rate. On paper it saves the most interest and gives the shortest total time.

Which method is better?

Mathematically the avalanche, because it removes the most expensive interest first. The snowball can motivate better because single debts vanish quickly. The calculator shows what that costs you in interest.

How much extra should I pay?

As much as your budget can sustain without taking on new debt. Even 50 more a month shortens the term noticeably; the calculator shows the effect at once.

What if the minimums do not cover the interest?

Then the balance does not fall and the debt grows. Raise the payment or the extra, or look for free debt advice before things get worse.

Sources and legal basis

As of: · Editorial policy

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