If you have any debts, you need to pay them back. When a borrower returns money by putting emphasis on the smallest amount, we call this technique the *“snowball”* method. This is applicable when we have more than one debt. This technique allows the repayment of the smaller debts faster. We will show you how to create a *credit card payoff calculator* in Excel using the snowball method.

## Debt Snowball Method

We have already discussed the definition. Let us see an example of this method. If you have three outstanding debts of $10, $20, and $30, the minimum payment is $2 for each. Then, you will pay the total minimum amount of $6 and may choose to include additional money towards the $10 debt.

This additional $10 will be applied to the lowest debt. Whenever we finish paying the lowest debt, then this amount will be applied to the second-lowest debt. Thus, it creates a snowball effect to make the payment faster. Now, there is an opposite technique called the *“avalanche”* method, where we pay the debt in the largest amount first.

## How to Create Credit Card Payoff Calculator Using Snowball Method in Excel: with Easy Steps

Here is a quick look at the *credit card payoff calculator *using the *snowball *method, which we will create by the end of this tutorial.

### Step 1: Setting up the Essentials

For the first method, we will input information about the debt. Then, we will pay an additional amount per month, and there will be a one-time payment for our *credit card payoff calculator*.

- Firstly, there will be three debts for us and the information related to our debts is as follows:
- Balance → Amount of outstanding debt.
- Payment → The minimum amount that needs to be paid off per month.
- Interest → Annual interest rate.

- Secondly, add another table for the additional payment:
- Per Month → The amount, we will pay on top of the minimum payment.
- One Time → If we pay an additional one-time payment we will input it here.

- Then, we will use these values to find the
*credit card payoff calculator*in Excel using the**snowball**method.

### Step 2: Finding First Debt Payoff

In this step, we will find the *credit card payoff* from the first debt. We will use ** the IF function** to do so.

- To begin with, type the following formula in cell
.*C11*

`=IF(H5+H6>=C5,C5,H5+H6+C6)`

- Here, if the total amount of the additional payment is more than that of the balance of the first debt, it will return the balance from debt 1. Else, it will add the values of the additional payment and the minimum payment for debt 1.

- Next, type another formula in cell
to find the balance.*D11*

`=IF(C5-C11<0,0,C5-C11)`

- Next, we will create a formula to find the payment values from the second month.
- So, type this formula in cell
.*C12*

`=IF(D11-$H$5-$C$6<=0,$H$5+D11-$H$5,$H$5+$C$6)`

- Next, we will type this formula in cell
to find the values of balance from the second month. Moreover, we have divided the yearly interest rate by 12 to find the monthly interest rate.*D12*

`=IF(D11-C12<=0,0,(D11-C12)*(1+($C$7/12)))`

- Lastly, drag the cell range
to*C12:D12*into the rest of the cells.*AutoFill the formula*

**Read More:** How to Create a Credit Card Payoff Spreadsheet in Excel

### Step 3: Calculating Second Debt Payoff

In this step, we will find the *credit card payoff* for the second debt.

- Firstly, type this formula in cell
.*E11*

`=IF(H5+H6>=C5+D5,D5,IF(AND(C11=C5,C11<>0),H5+H6-D5+D6,D6))`

- Next, type this formula in cell
.*F11*

`=D5-E11`

- Afterward, type this formula in cell
.*E12*

`=IF(AND(((F11-$H$5+C12-D$6-C$6)<=0),D12=0),F11,IF((F11-$D$6-$H$5)<=0,F11,IF(D12=0,$H$5-C12+D$6+C$6,D$6)))`

**Formula Breakdown**

**AND(((F11-$H$5+C12-D$6-C$6)<=0),D12=0)****Output: False**.

**(F11-$D$6-$H$5)<=0****Output: False**.

**IF(D12=0,$H$5-C12+D$6+C$6,D$6)****Output: 160**.

- Formula reduces to →
**IF(FALSE,F11,IF((F11-$D$6-$H$5)<=0,F11,160))****Output: 160**.

- Then, type another formula in cell
.*F12*

`=IF(F11-E12<0,0,(F11-E12)*(1+($D$7/12)))`

- Finally,
the formula from the range*AutoFill*to the other cells to find the values for debt 2.*E12:F12*

### Step 4: Finding Third Debt Payoff

We will find the *credit card payoff* for the last debt using the **snowball **method in Excel.

- To begin with, type this formula in cell
.*G11*

`=IF(H5+H6>=D5+E5+C5,E5,IF(AND(E11=D5, E11<>0),H5+H6-D5-C5+E6,E6))`

- Next, type another formula in cell
to find the first balance.*H11*

`=E5-G11`

- After that, type another formula in cell
.*G12*

`=IF(AND(((H11-$H$5+E12-E$6-D$6-C$6)<=0),F12=0),H11, IF((H11-$E$6-$H$5)<=0,H11,IF(F12=0,$H$5-E12+E$6+D$6+C$6,E$6)))`

**Formula Breakdown**

**AND(((H11-$H$5+E12-E$6-D$6-C$6)<=0),F12=0)****Output: False**.

**(H11-$E$6-$H$5)<=0****Output: False**.

**IF(F12=0,$H$5-E12+E$6+D$6+C$6,E$6)****Output: 250**.

- Formula reduces to →
**IF(FALSE,H11, IF(FALSE,H11,250))****Output: 250**.

- Then, type this formula in cell
.*H12*

`=IF(H11-G12<0,0,(H11-G12)*(1+($E$7/12)))`

- Then,
the formula from the cell range*AutoFill*to the rest of the cells.*G12:H12*

- Now, we have filled in the formulas up to month 120 (10 years).

### Step 5: Applying VBA to Hide Extra Rows

We can easily hide the extra rows using *Exc**el** VBA** macr**os*. After that, we will use another ** VBA** code to unhide the rows.

- Firstly, from the
tab → select*Developer*. Alternatively, you can press*Visual Basic*to do so.*ALT+F11*

- Then, type the following code in the
.*Module*

```
Option Explicit
Sub Hide_Rows()
Dim Cell_Range As Range
Application.ScreenUpdating = False
For Each Cell_Range In Range("G11:G130")
If Cell_Range.Value = 0 Then
Cell_Range.EntireRow.Hidden = True
Else
Cell_Range.EntireRow.Hidden = False
End If
Next Cell_Range
Application.ScreenUpdating = True
End Sub
Sub Unhide_Rows()
Rows.EntireRow.Hidden = False
End Sub
```

**VBA Code Breakdown**

- We have two
in this*Sub procedures*. The first one is for hiding the rows that have*VBA code***0**in the range. We are using a*G11:G130*to go through all the cell ranges.*For Each Next loop* - The last one just unhides all the rows in the active sheet.

- Then,
and*Save*the*Close*.*Module* - After that, we will insert two buttons to execute the codes.
- So, from the
tab →*Developer*→ select*Insert*.*Button (Form Control)*

- It will change the cursor, then drag it to create a box. Afterward, repeat this process.

- There will be two buttons in the dataset.

- Now, we will assign macros to the buttons. So, right-click on “
” and select “*Button 1*”.*Assign Macro*

- Then, select “
**Hide_Rows**” and press.*OK*

- After that, do so for the second button and select “
**Unhide_Rows**” and press.*OK*

- Then, we will change the button labels to “
**Hide**” and “**Unhide**” respectively. - Now, if we press the “
**Hide**” button, the extra rows will be hidden.

- Moreover, if we click on the “
**Unhide**” button, it will unhide the rows.

**Download Practice Workbook**

## Conclusion

We have shown you five quick steps to create a credit card payoff calculator in Excel using the snowball method. If you face any problems regarding these methods or have any feedback for me, feel free to comment below.

**Related Articles**

- Create Multiple Credit Card Payoff Calculator in Excel Spreadsheet
- Make Credit Card Payoff Calculator with Amortization in Excel

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