Debt Snowball Calculator

What is the Debt Snowball Calculator?

The Debt Snowball Calculator compares two ways to pay off multiple debts. In the snowball method, you pay off the smallest debt first, while in the avalanche method, you pay off the debt with the highest interest rate first. The calculator shows the duration and interest costs for both methods.

The calculator is free, works in your browser without registration, and displays the result as soon as you change the values. The calculations are done on your device, and the information you enter is not sent anywhere.

Formula and Calculation Principle

In both methods, you pay the minimum payment on all debts each month, and any extra money is directed to the prioritized debt. Once a debt is paid off, its minimum payment is transferred to the next debt repayment.

Practical Example

Three debts ($3,000, $8,000, and $1,500) and an extra monthly payment of $200: the calculator tells you which method allows you to become debt-free sooner and how much interest you save. With the default settings, the calculator gives a result of: Interest savings with the avalanche method $140.31.

Who is the calculator suitable for?

For someone with multiple consumer loans or credit card debts who wants to plan their debt repayment. Small debts can be motivating with the snowball method, while high-interest debts are better handled with the avalanche method.

Tips and Considerations

• Keep minimum payments on time: they protect against payment defaults.
• Direct all extra payments to the prioritized debt.
• If debts are too high, contact financial and debt counseling.