Debt Elimination (Snowball/Avalanche) Calculator

This screen provides a quick and easy way to calculate snowball (lowest balance first) and avalanche (highest interest first) debt pay down strategies.

Select the funding strategy, whether minimum payments will be made on credit cards, and any additional amount to be included in the pay down cash flow.

Enter as many credit cards (revolving credit) or installment loans as desired. Please note that credit card payment amounts will be calculated for you if "make minimum payments" is activated (and consequently, the payment field cannot be modified directly in this mode. If you really want to modify the credit card payments, you'll need to turn off the "make minimum payments option to do so.)

Press calculate to generate the solution.

No example script provided.

Most data entry items are self-explanatory with the following exceptions:

Make minimum payments will assume a monthly payment that is the greater of 4% of the outstanding balance or $10.

Using either debt elimination account funding strategy, all accounts are paid on a monthly basis and all excess funds are applied to the target account until it is paid in full. After which, the next account in the list becomes the target account.

The maximum time frame calculated is 30 years.

The monthly debt calculation is performed as follows:

Account Balance Beginning of Month (BOM) = Prior month Ending Balance (or initial account balance if it's the first month)

Interest Charged = Account Balance BOM * (Account Interest Rate / 12)

Payment Required = Stated Credit/Loan Payment (or) Account Balance BOM * 4% (if credit card and making minimum payments)

Payment Made = Payment Required + any excess funds being applied if it's the target account.

Account Balance End of Month = Account Balance BOM + Interest Charged - Payment Made.