MoneyBasisUnderstand your result
Payoff order
Snowball prioritizes the smallest starting balance; avalanche prioritizes the highest APR. Both reserve minimums and roll unused payments forward within the same month.
Debt-free date
The estimated month when every entered balance reaches zero if the monthly budget continues.
How this calculation works
- Enter each debt’s name, balance, interest rate and, if you know it, the minimum payment.
- Enter the total monthly amount you can put toward all debts.
- The calculator pays the smallest balance first, keeps minimums on the rest, and rolls freed payments forward.
1. Interest is added to each active balance. 2. Required minimum payments are reserved. 3. Remaining budget goes to the selected priority debt. 4. Any unused payment rolls to the next debt in the same month.
Snowball prioritizes the smallest balance in the starting payoff order. Avalanche prioritizes the highest APR. Minimum payments are reserved for all active debts before extra payments follow the selected order.
- Debt snowball
- The debt snowball method pays the smallest balance first while making minimum payments on every other debt, then rolls the freed payment into the next smallest balance.
Assumptions & limitations
- The minimum payment entered for each debt is used throughout payoff, capped at the amount owed.
- The monthly budget is the total you can put toward all debts.
- The total monthly budget must cover entered minimum payments before a schedule can be calculated.
Educational estimates only. MoneyBasis does not provide financial, investment, tax or legal advice.
Sources
Frequently asked questions
How do I compare snowball and avalanche?
Keep the same debts and monthly budget, then switch methods. Compare payoff order, duration, and total interest.
Why is my budget too low?
The monthly budget must cover the entered minimum payments. Increase it or correct the minimums before interpreting a payoff estimate.
How does the debt snowball method work?
You pay minimums on every debt and put extra money toward the smallest balance. When that one is gone, you roll the payment into the next smallest debt.