Debt Snowball Calculator

Debt Snowball Calculator

Simulate multiple debts using the snowball repayment strategy, with a fixed total payment budget.

UNDERSTAND A ANSWER

Aika ng calculated el ua ngerang?

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 budgetScenarioCalculated result
160124
200222
240320

Assumptions, interpretation me a common mistake

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.

El ua ngerang el interpret a 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 el mo 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.