Savings Snowball Calculator

What is a Savings Snowball Calculator?

A savings snowball calculator is a tool that helps you eliminate debt using the debt snowball method:

1. List Debts: From smallest to largest balance (ignore interest rates).
2. Pay Minimums: On all debts except the smallest.
3. Attack Smallest Debt: Throw extra cash at it until paid off.
4. Roll Payments: Add its payment to the next debt, creating a “snowball effect.”

Popular tools include Money Saving Expert’s Snowball Calculator and Vertex42’s Excel template.

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How a Debt Snowball Calculator Works

1. Input Debts:
   • Balance, interest rate, and minimum payment for each.
   • Example:
     • Credit Card A: $500(18$25/month
     • Credit Card B: $2,000(22$50/month
     • Student Loan: $10,000(5$150/month
2. Set Monthly Budget:
   • Total debt payments (e.g., $500/month).
3. Calculate Timeline:
   • The tool shows how fast each debt will be paid off using the snowball method.

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Debt Snowball vs. Debt Avalanche Calculator

Method	Strategy	Best For
Debt Snowball	Pay smallest balances first	Quick wins, motivation
Debt Avalanche	Pay highest interest rates first	Saving money on interest

Example:

• Snowball: Pays off $500debtin3months,freeingup$25/month.
• Avalanche: Targets $2,000 debt at 22% APR first, saving more on interest.

Use a debt avalanche vs debt snowball calculator (like Undebt.it) to compare total interest paid and timelines.

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Top Savings Snowball Calculators

1. Money Saving Expert’s Snowball Calculator
   • Free, user-friendly, and shows debt-free date.
2. Vertex42 Excel Template
   • Customizable spreadsheet for detailed tracking.
3. Undebt.it
   • Compares snowball vs. avalanche strategies.

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Free Savings Snowball Calculator Excel Template

1. Download: Get Vertex42’s template here.
2. Input Data: Balances, rates, and payments.
3. Track Progress: Watch your snowball grow as debts disappear.

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Step-by-Step: Using the Snowball Method

1. List Debts: Sort by balance (smallest to largest).
2. Calculate Monthly Payment: Total all minimums + extra cash.
3. Attack Debt 1: Pay minimums on others, throw extra at the smallest.
4. Repeat: Roll payments to the next debt after each payoff.

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FAQs: Savings Snowball Calculators

Q: Is the snowball method better than avalanche?
A: Snowball offers faster motivation; avalanche saves more money. Use a calculator to compare.

Q: How accurate are Excel snowball calculators?
A: Vertex42’s template factors in interest and payments for precise timelines.

Q: Can I use a snowball calculator for student loans?
A: Yes! Prioritize smaller balances first, regardless of type.

Q: Are free snowball calculators safe?
A: Reputable tools like Money Saving Expert don’t require personal data.

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Why Use a Savings Snowball Calculator?

• Visual Progress: Track debt reduction milestones.
• Motivation: Quick wins keep you committed.
• Strategy Comparison: Snowball vs. avalanche trade-offs.