Payoff Strategy Engine
Build a clear path out of debt.
Organize your balances, apply the debt snowball method, and see a month-by-month payoff estimate.
Additional cash added to the monthly minimum payment pool.
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These sample figures are entirely fictional and do not represent real people, real debts, or active credit offers.
Snowball Allocation
Add your debts to see your payoff plan.
The Debt Snowball Process
Order by Balance
List all active debts from smallest outstanding balance to largest. Ignore interest rates.
Eliminate Target
Pay minimum amounts on all accounts. Allocate the extra monthly payment to the smallest target balance.
Cascade Leftovers
When the smallest debt is cleared, roll its entire payment (minimum + extra) into the next smallest target.
Worked Example (Estimate)
Here is a scenario simulating three debts under the stable snowball payment sequence, utilizing a fixed $300/mo extra payment.
| Debt Name | Start Balance | Min Payment | APR | Estimated Payoff |
|---|---|---|---|---|
| Credit Card A | $500.00 | $25.00 | 18.00% | Month 2 |
| Medical Bill | $1,200.00 | $40.00 | 0.00% | Month 5 |
| Student Loan | $8,000.00 | $150.00 | 5.50% | Month 21 |
Note: Figures represent hypothetical estimates. Actual creditor terms and daily interest formulas differ.
Snowball vs. Avalanche
The snowball method prioritizes quick psychological wins by clearing small balances first. The avalanche method prioritizes math by attacking the highest interest rate first. Neither is universally superior.
Read Full Method ComparisonFrequently Asked Questions
What debt should be paid first?
Under the snowball strategy, the debt with the smallest outstanding balance is targeted first, regardless of APR. This provides quick visual milestones that keep users motivated.
Does APR still matter?
Yes. While sorting is based on balance, interest still accrues monthly. High APR debts accumulate interest faster, which increases the total amount paid. The calculator integrates APR to maintain projection accuracy.
What happens after one debt is paid?
Its minimum payment is not spent or saved. Instead, that entire amount rolls into the next target debt's monthly payment pool, creating a larger payment "snowball."
Does the calculator store financial data?
No. All calculations are executed locally inside your web browser. We do not transmit or store your inputs on our servers.
Why might creditor statements differ?
Most creditors calculate interest daily, apply grace periods, and process payments on varying billing cycles. This calculator applies standard monthly compounding to provide simplified projections.
What happens when minimum payments do not cover interest?
This causes negative amortization. The unpaid interest is added to the balance, making the total debt grow over time. The calculator flags this status immediately.