Debt Snowball Calculator
Simulate month-by-month debt elimination prioritizing your smallest balances first for rapid psychological momentum and rolled payments.
Targets small debts first for psychological momentum, then rolls freed cash into larger balances.
Debt Snowball Rollover Algorithm
Priority Order = Lowest Balance to Highest | Payment on Priority Debt = Minimum Payment + Extra Monthly + Rolled Minimums of Paid Debts- Step 1: Make minimum payments on all outstanding debts.
- Step 2: Apply all extra payment funds to the single debt with the lowest balance.
- Step 3: When Debt #1 is paid off, roll its entire minimum payment into the extra payment for Debt #2.
- Result: The monthly payment snowball compounds larger with each account cleared.
Step-by-Step Worked Example
Calculation Steps:
How to Use This Calculator
Assumptions & Limitations
- All credit lines are frozen with zero new spending during the payoff simulation.
- Minimum payments from cleared debts are 100% rolled into the next priority debt.
Frequently Asked Questions
Why does the debt snowball work so well psychologically?
Research by Harvard Business School confirms that eliminating small debts quickly provides immediate visible progress and dopamine feedback, keeping borrowers motivated to finish the entire plan.
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