Debt Snowball Calculator
Debt Snowball Payoff
Formula
Each month: Interest = Balance × Monthly Rate; New Balance = Balance + Interest - Payment. Repeat until paid off.
Frequently Asked Questions
What is the debt snowball method?
The debt snowball method focuses on paying off the smallest debts first while making minimum payments on larger debts. As each small debt is paid off, that payment amount is added to the next smallest debt, creating a snowball effect.
Debt snowball vs debt avalanche?
The snowball method pays smallest balances first for psychological wins. The avalanche method pays highest interest rates first, saving more money mathematically. Both are effective strategies.
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