Finance & Irish taxes · Calculator companion · By K Imports
Debt avalanche and snowball: practical guide
This guide explains how to use the Count.ie debt avalanche and snowball. Allocate a fixed debt budget across several balances. Follow the inputs, method and worked example below, then compare your own scenario.
Guide written .
Open the Debt avalanche and snowball calculatorWhat to prepare
- Have the figures for total monthly debt budget (€) ready, from a dated document, with the period (annual, monthly or per transaction) that each input expects.
- Note the date of the transaction, since this model has no year selector and fixed rates may have changed.
- Separate known facts from assumed rates before relying on the headline result.
Understand the inputs
- Extra-payment strategy
Options: Highest interest first; Smallest balance first.
The calculation method
Pay fixed minimums; roll the remaining budget into highest-rate or smallest-balance debts.
Worked example
Illustrative inputs and their result.
Example inputs
- Debts: balance, annual rate %, monthly minimum
- 4000, 18, 120 8000, 7, 180
- Total monthly debt budget (€)
- 500
- Extra-payment strategy
- Highest interest first
Calculated example result
- Repayment Months
- 27
- Total Interest
- €1,286.05
How to interpret the result
Rows: balance, annual rate %, monthly minimum. Distinguish a tax saving, a tax bill, cash received and money remaining: they are not interchangeable. An estimate does not establish eligibility, filing compliance or when a refund will be paid.
Change one input of debt avalanche and snowball at a time and record the result; keep a record of the year, date and assumptions so a change in the result can be explained.
Common mistakes to avoid
- Do not mix tax years or apply a newly announced measure to an earlier transaction.
- Avoid counting an allowance, credit, contribution or loss twice.
- Check exclusions and personal circumstances before relying on the headline result.
Assumptions and sources
Rows: balance, annual rate %, monthly minimum. Rates and minimums remain fixed.
If your case falls outside this scope, use a more suitable calculator or contact us about an unclear method.