Debt Reduction Calculator
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Debt Reduction CalculatorStrategies
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Snowball (Lowest Balance First)
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Avalanche (Highest Interest First)
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Balance Date:1/1/17Order Entered In Table
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No Snowball
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Creditor Information TableCustom - Highest First
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RowCreditorBalanceRatePaymentCustomInterest-onlyCustom - Lowest First
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1PayPal92.5023.935.002184.23
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2Capital 135.009.81%30.0010.29Getting Started: Visit the web page and watch the video. Click on HELP in cell G2.
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3AMFCU1,390.0012.00%55.00313.90
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4Wayfair1,450.0013.50%60.00516.32Note: This calculator only allows up to 10 creditors. For more, get the extended version.
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50.00
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60.00Lowest Balance First: Gives you the benefit of the snowball effect, but you may
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70.00pay more interest in the end than Highest Interest First. The main benefit of this
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80.00approach is the psychological effect of seeing the number of debts disappear
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90.00more quickly.
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100.00
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Total:2,967.50Total:180.00Highest Interest First: This strategy results in the lowest total interest, but
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depending on the balance of your higher interest loans, it may take you longer
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Monthly Payment 1,700.00 . to see your first loan/debt completely paid off. If the difference in the total
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Initial Snowball\$1,520.00interest is not significant, than you may get more satisfaction from the Lowest
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Balance First method.
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Strategy:Snowball (Lowest Balance First)1
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TRUEOrder Entered in the Table: You can use the sort feature (Data>Sort Range) to
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Results are only estimateschoose how you want the snowball effect to work. For example, if you want
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Creditors inOriginalTotal InterestMonths toMonth Paidto use a combination of Lowest Balance First AND Highest Interest First, then
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Chosen OrderBalancePaidPay OffOfffirst select the creditor information table (B7:F17), then go to Data > Sort Range,
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Capital 135.000.291Feb-17 . and sort by Balance:Ascending and Rate:Descending (or vice versa).
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PayPal92.50184.231Feb-17 .
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AMFCU1,390.0014.662Mar-17 . Warning: If you are careful, you can rearrange the order of the entries in the
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Wayfair1,450.0032.132Mar-17 . creditor table by copying or cutting and pasting, but if you insert a row above
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0.000.000 . row 1 or after row 10, the formulas will be messed up.
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0.000.000 .
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0.000.000 . No Snowball: Select this option if you want to see how long it will take to pay
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0.000.000 . off the debts without maintaining a constant monthly payment. In some cases,
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0.000.000 . you may find it will take more than 30 years (resulting in errors in the spreadsheet).
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0.000.000 .
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Total Interest Paid:
231.31(Lower is Better)Custom-Highest or Custom-Lowest: You can manually control the order the
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debts are paid by entering numbers or formulas in the Custom column. For example,
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if you enter the values 1,2,3,5,4 then rows 4 and 5 will be swapped. You can enter
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your own formulas as well, whatever they might be.
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[42]Minimum Payments: This calculator does not provide the option of making only
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the minimum monthly payments on credit cards or lines of credit. See tip #3 below.
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Tip 1: If you want to use the Lowest Balance First method and you have two debts that
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are close to the same balance but have very different interest rates, you may
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see a substantial reduction in the total interest paid if you change the order of
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the two entries so that you pay the higher rate first. In that case, try using the
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Order Entered in the Table strategy.
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Tip 2: Like Tip 1, if you want to use the Highest Interest Rate method, and you
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have two debts with similar rates but very different balances, you may want to
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change the order so that you pay off the lower balance first. This may make very
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little difference in the total interest, but it can make you feel better faster.
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Tip 3: Update the Creditor Information Table every few months. Your minimum
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payments may change over time as the balance in your accounts change, or if your
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interest rate changes. You may be able to further reduce your overall interest and
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