Snowball Debt Payoff Calculator
This calculator uses the **Debt Snowball Method**, a popular debt reduction strategy where you pay off your debts in order of smallest balance first, regardless of the interest rate. Once the smallest debt is paid off, you roll the money you were paying on it (minimum payment + extra payment) into the next smallest debt. This method focuses on psychological wins, giving you the motivation to stay committed to your goal of becoming debt-free. Enter your debts and extra payment to see your customized payoff plan.
Your Debt List
Payment Strategy
Your Snowball Results
Debt-Free Date
Total Payoff Time (Years)
Total Interest Paid
Monthly Payment Summary
Visual Analysis
Debt Balance Over Time
Interest vs Principal Comparison
Detailed Payoff Schedule
| Month/Year | Starting Balance | Payment | Principal Paid | Interest Paid | Ending Balance | Status |
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Frequently Asked Questions (FAQ)
The Snowball Method involves listing all your debts from the smallest outstanding balance to the largest, ignoring the interest rate. You pay the minimum payment on all debts except for the smallest one, to which you apply any extra funds you can afford. Once the smallest debt is paid off, you take the money you were paying on it and 'roll it' into the payment for the next smallest debt. This creates a growing 'snowball' of payment, hence the name.
The key difference lies in the prioritization. The **Snowball Method** prioritizes debts by balance (smallest to largest) for psychological wins and quick momentum. The **Avalanche Method** prioritizes debts by the highest interest rate first, regardless of the balance. Mathematically, Avalanche saves the most money in interest, but Snowball is often more successful for people who need motivational wins to stick to their plan.
The monthly interest for each debt is calculated based on the outstanding balance at the beginning of the month. The formula used is: $\text{Monthly Interest} = (\text{Outstanding Balance} \times \text{Annual Interest Rate}) / 12$. This amount is added to the balance before the principal payment is applied, which is why paying down the principal quickly is so important.
Rolling Payment Logic is the core of the Snowball Method. When a debt is fully paid off, the total amount you were paying towards it (its minimum payment + any portion of the extra payment it was receiving) is immediately added to the minimum payment of the next smallest debt on the list. This transfer of payment momentum is what accelerates the payoff process.
This calculator assumes a fixed Annual Interest Rate (APR) for the entire duration of the payoff plan. While it provides an excellent estimate, if your debts have variable interest rates that change frequently, the actual payoff timeline and total interest paid may differ from the calculation. For variable rate debts, it's best to re-run the calculation periodically with the most current APR.
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