Simulate multiple debts using the snowball repayment strategy, with a fixed total payment budget.
UNDERSTAND THE ANSWER
How is this calculated?
Minimum payments stay fixed. Paid-off minimum payments roll into the remaining debts. Snowball prioritizes the smallest opening balance; avalanche prioritizes the highest interest rate. Interest accrues before end-of-month payments. No new borrowing, fees or promotional-rate changes are included.
Monthly multi-debt simulationInterest = opening balance × annual rate / 1200; remaining budget pays the priority debt.
A practical example
Compare a 2,000 card at 24% and a 6,000 loan at 8%, using minimum payments of 60 and 150 plus an extra 200 each month.
Calculated result
Additional monthly budget
Scenario
Calculated answer
160
1
24
200
2
22
240
3
20
Assumptions, interpretation and common mistakes
Calculation assumptions
Rates and minimum payment amounts stay fixed; no new borrowing or fees are added.
The initial total minimum payments plus extra payment form a fixed monthly budget.
Minimum payments are made first, then remaining cash targets the smallest balance or highest rate.
How to interpret the result
The payoff order shows when each debt is cleared.
Paid-off minimum payments remain in the budget and roll into remaining debts.
Final payments are limited to the remaining amount owed.
Common mistakes to avoid
Using changing percentage minimums as if they were fixed amounts.
Omitting a debt or assuming new purchases have no effect.
Entering a budget that cannot reduce the total balance.