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MoneyBasis

Formulas and assumptions

How MoneyBasis calculates results

Explore the formulas, assumptions and sources behind each estimate. Your inputs provide the starting point; the calculation runs in your browser.

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Debt Snowball Calculator

What it estimates

This calculator estimates a debt payoff schedule using your entered minimum payments, total monthly debt budget and selected snowball or avalanche method.

How it calculates

Payment allocation

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.

Inputs

Debts · Monthly debt budget · Payoff method

Included / not modeled

Included

  • Entered minimum payments
  • Monthly interest
  • Snowball and avalanche payoff orders
  • Unused payments rolled forward within the same month

Not modeled

  • New borrowing
  • Changing APRs
  • Fees or lender minimum-payment recalculations
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.

Sources

Open Debt Snowball calculator →