What this calculator helps you do
Model a debt plan that directs extra money to the smallest remaining balance first. The calculation runs entirely in your browser; SENNA Finance does not receive the values entered into this tool.
Worked example
Using the default example—debt 1 balance of $1,200, debt 1 apr of 18%, debt 1 minimum of $50, debt 2 balance of $4,800, debt 2 apr of 12%—the calculator returns debt-free in of 2 years 5 months; total starting debt: $17,000.00; estimated total interest: $1,715.82. Change the assumptions to match your own case rather than relying on the example.
Formula and calculation basis
Inputs are converted to the periodic units required by the formula. Results are calculated with full JavaScript numeric precision and rounded only for display.
How to interpret the result
The snowball method can create quicker account closures and motivational wins, though it may cost more interest than prioritizing the highest rate.
Common mistakes to avoid
- Stopping minimum payments on non-target debts.
- Adding new balances while following the plan.
- Ignoring fees, penalties, or rate changes.
Limits and assumptions
The model supports three debts, constant rates, fixed minimums, and a fixed monthly extra amount.
Outputs are estimates, not contractual quotations, regulated disclosures, tax advice, investment advice, or a substitute for professional review.
Frequently asked questions
Why target the smallest balance?
The method aims to create early wins and free a minimum payment for the next debt.
Is snowball always cheapest?
No. The avalanche method often reduces interest more when rates vary.
What happens after one debt is paid?
Its modeled minimum is rolled into the amount available for the next debt.
Sources and reference context
External references provide educational context and do not imply endorsement of SENNA Finance.