Debt Payoff Calculator — Snowball Method

Enter all your debts and instantly see which to tackle first, when you'll be completely debt-free — and how much every euro of extra payment saves you.

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Debt-free in

2 y 2 mo

instead of 3 y 3 mo

You save

13 months

€499 interest saved

Order – smallest balance first

Pay the minimum on everything, put the extra on the smallest balance. Once it's cleared, its payment rolls onto the next.

1
Ratenkauf€600 · cleared after 3 mo
2
Kreditkarte€2,500 · cleared after 1 y
3
Autokredit€9,000 · cleared after 2 y 2 mo
Total debt: €12,100Monthly total: €500

Tip

The snowball method pays off the smallest debt first – not the most expensive. Mathematically the avalanche (highest interest first) saves a little more, but the quick first win keeps most people going. Consistency beats optimization.

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Frequently asked questions about the snowball method

What is the debt snowball method?

You pay the minimum on every debt and throw every extra euro at the smallest balance. Once it's cleared, its payment rolls onto the next-smallest – the “snowball” grows. You clear individual debts quickly and stay motivated.

Snowball or avalanche – which is better?

The avalanche (highest interest first) saves slightly more interest on paper. But the snowball is psychologically stronger: the first paid-off debt comes sooner and keeps you going. Studies show more people actually become debt-free with the snowball.

What do extra payments do?

Every extra euro per month shortens the term disproportionately, because freed-up payments roll onto the next debt. The calculator shows exactly how many months and how much interest you save.

Do I have to enter interest rates?

No, the interest field is optional. For installment loans the interest is usually already baked into the payment – you can leave it empty. If you enter rates, the calculator also computes the interest saved.

Which debts belong here?

All debts with a fixed monthly payment: consumer loans, credit-card installments, buy-now-pay-later, private loans. Leave out mortgages and leasing – they follow their own logic.

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