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Debt Calculator / Payoff formulas

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Payoff formulas

Same budget, different target. That is the whole difference between avalanche and snowball.

Each month

Interest is added: balance × (APR/100) / 12. Then every debt receives its minimum (or the remaining balance if smaller). Leftover budget goes to the target: highest APR (avalanche) or smallest balance (snowball).

Budget

Budget = sum of minimums + extra. It does not automatically rise when a card is paid off except that the freed minimum stays in the pool — the extra is applied after remaining minimums.

Minimums-only baseline

The same engine with extra = 0. Interest saved is that total minus the better of avalanche/snowball.

FAQ

Daily compounding?

Not modelled. Monthly is the usual card statement convention used here.

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