Debt Reduction Strategy : Learn the Snowball Method
Use the video above to learn the method.
How to Use the Calculator
Below you enter a Creditor Name (any name you like), Balance owed, Interest rate and Monthly payment. Simply click the Red “Delete” button to remove a row and the Blue “Add Another Creditor” to add another row (creditor).
You have two options.
Option 1: Leave the field for “Additional Amount” to zero which will show you how much you can save simply by applying the method and not adding additional money, then click “Calculate Debt Snowball”.
Option 2: If you have additional money to add you can put it in the additional money field and hit “Calculate Debt Snowball”.
The results will show you month by month (each row below is a month) how much to send to each creditor/debt. Your savings will be shown in months saved and money (interest) saved.
Summary : the Snowball method reorders your debts by smallest (lowest) debt balance first, and starts applying the payments once debts are paid to the smallest debt balance left, or any additional payments to the smallest debt balance left.
Compare to Debt Avalanche Calculator here.
| Results |
Balance Owed |
Payment Amount |
Interest Cost |
# of Pmts Left |
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| Current totals: | |||||
| Debt Snowball Totals: | |||||
| Time and interest savings from Accelerated Debt Payoff Plan: | |||||
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The total of your current monthly debt payments () plus the additional monthly amount of , is equal to . This is how much you will allocate to paying off your debts until all of the above debts are paid off.
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