**Excel** is the most widely used tool for dealing with massive datasets. We can perform myriads of tasks of multiple dimensions in **Excel**. In this article, I will show you how to create a snowball payment calculator in **Excel**.

**Table of Contents**hide

## Download Practice Workbook

Download this workbook and practice while going through the article.

## Introduction to Snowball Payment

The Snowball method is a loan repayment method where you pay a minimum amount to every loan and use the rest of the amount to repay the lowest loan. 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 amount 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.

## 12 Steps to Create Snowball Payment Calculator in Excel

This is the dataset for today’s article. We have **3** debts. I will show the repayment schedule of these debts using the snowball payment calculator in **Excel**. Please note that the total payment each month is **$500**. After a minimum payment of **$100** for each loan, there will be an extra **$(500-3*100)** or **$200** which will be used for the lowest debt. Additionally, I have a one-time payment of **$100** too.

### Step 1: Calculate Payment Amount for 1st Month of Lowest Debt

The first step is to calculate the amount that you are going to pay for the 1st month of the lowest debt. To do so,

- Go to
**C13**and write down the following formula

`=IF((E4+E5)>=D8,D8,(E4+E5+D9))`

- Then, press
**ENTER**to get the output.

**Read More:** **How to Calculate Monthly Payment in Excel (2 Handy Ways)**

### Step 2: Find Balance After 1st Month of Lowest Debt

The next step is to find the balance for 1st month of the lowest debt. To calculate it,

- Go to
**D13**and write down the following formula

`=IF(D8-C13<=0,0,(D8-C13))`

- Then, press
**ENTER**to get the output.

**Read More:** **How to Calculate Monthly Payment on a Loan in Excel (2 Ways)**

### Step 3: Calculate Payment Amount for 1st Month of 2nd Lowest Debt

The next step is to calculate the amount that you are going to pay for the 2nd lowest debt. To do so,

- Go to
**E13**and write down the following formula

`=IF((E4+E5)>=(D8+F8),F8,IF(AND(C13=D8,C13<>0),(E4+E5-D8+F9),F9))`

**Formula Breakdown:**

**AND(C13=D8,C13<>0)**→ This is the logical test.- Output: FALSE

**(E4+E5)>=(D8+F8)**→ This is another logical test.- Output: FALSE

**IF((E4+E5)>=(D8+F8),F8,IF(AND(C13=D8,C13<>0),(E4+E5-D8+F9),F9))**- Output: 100.

- Then, press
**ENTER**to get the output.

### Step 4: Find Balance After 1st Month of 2nd Lowest Debt

The next step is to find the remaining balance for the 1st month of the 2nd lowest debt. To do so,

- Go to
**F13**and write down the following formula

`=IF(F8-E13<=0,0,(F8-E13))`

- Then, press
**ENTER**to get the output.

### Step 5: Calculate Payment Amount for 1st Month of Last Debt

The next step is to calculate the amount that you are going to pay for the 1st month of the last debt. To do so,

- Go to
**G13**and write down the following formula

`=IF((E4+E5)>=(F8+H8+D8),H8,IF(AND(E13=F8, E13<>0),(E4+E5-F8-D8+H9),H9))`

- Then, press
**ENTER**to get the output.

### Step 6: Find Balance After 1st Month of Last Debt

Next, I will show how to find the remaining balance after the 1st month of the last debt. For this,

- Go to
**H13**and write down the following formula

`=IF(H8-G13<=0,0,(H8-G13))`

- Then, press
**ENTER**to get the output.

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### Step 7: Determine Payment Amount for Subsequent Months of Lowest Debt

Now, I will show how to calculate the amounts that you need to pay for the subsequent months. First of all, I will use a formula for the lowest debt.

- Go to
**C14**and write down the following formula

`=IF((D13-$E$4-$D$9)<=0,($E$4+(D13-$E$4)),($E$4+$D$9))`

- Then, press
**ENTER**to get the output.

**Read More:** **How to Calculate Down Payment in Excel Using VLOOKUP**

### Step 8: Calculate Balance After Subsequent Months of Lowest Debt

Next, I will calculate the remaining balance after subsequent months of the lowest debt. This balance will include the interest applied in the previous months.

- Go to
**D14**and write down the following formula

`=IF((D13-C14)<=0,0,(D13-C14)*(1+(D$10/12)))`

- Then, press
**ENTER**to get the output

### Step 9: Determine Payment Amount for Subsequent Months of 2nd Lowest Debt

Now, you will see how to determine the amount that you need to pay for the subsequent months of the 2nd lowest debt. For this,

- Go to
**E14**and write down the following formula

`=IF(AND(((F13-$E$4+C14-F$9-D$9)<=0),D14=0),F13,IF(D14=0,$E$4-C14+F$9+D$9,F$9))`

**Formula Breakdown:**

**AND(((F13-$E$4+C14-F$9-D$9)<=0),D14=0)**→ This is the 1st logical test- Output: FALSE

**IF(D14=0,$E$4-C14+F$9+D$9,F$9)**- Output: 100

**IF(AND(((F13-$E$4+C14-F$9-D$9)<=0),D14=0),F13,IF(D14=0,$E$4-C14+F$9+D$9,F$9))**- Output: 100

- Then, press
**ENTER**to get the output.

### Step 10: Find Balance After Subsequent Months of 2nd Lowest Debt

The next step is the calculation of the balance after the subsequent months of 2nd lowest debt. These payments include the interests of previous months. To calculate it,

- Go to
**F14**and write down the following formula

`=IF((F13-E14)<=0,0,(F13-E14)*(1+(F$10/12)))`

- Then, press
**ENTER**to get the output.

### Step 11: Calculate Payment Amount for Subsequent Months of Last Debt

This time, I will calculate the amount that you need to pay for the subsequent months of the last debt. To do so,

- Go to
**G14**and write down the following formula

`=IF(AND(((H13-$E$4+E14+C14-H$9-F$9-D$9)<=0),F14+D14=0),H13,IF(H$9>=H13,H13,IF(AND(F14=0,D14=0),$E$4-E14-C14+H$9+F$9+D$9,H$9)))`

**Formula Breakdown:**

**AND(((H13-$E$4+E14+C14-H$9-F$9-D$9)<=0),F14+D14=0)**→ This is the 1st logical test.- Output: FALSE

**H$9>=H13**→ This is the 2nd logical test.- Output: FALSE

**AND(F14=0,D14=0)**→ This is the 3rd logical test.- Output: FALSE

**IF(AND(((H13-$E$4+E14+C14-H$9-F$9-D$9)<=0),F14+D14=0),H13,IF(H$9>=H13,H13,IF(AND(F14=0,D14=0),$E$4-E14-C14+H$9+F$9+D$9,H$9)))**- Output: 100

- Then, press
**ENTER**to get the output.

**Read More:** **How to Calculate Monthly Payment with APR in Excel**

### Step 12: Determine Balance After Subsequent Months of Last Debt

Finally, I will calculate the remaining balance after subsequent months of the last debt. For this,

- Go to
**H14**and write down the following formula

`=IF((H13-G14)<=0,0,(H13-G14)*(1+(H$10/12)))`

- Then, press
**ENTER**to get the output.

- Finally, use the
**Fill Handle**to**AutoFill**the columns. Your final result will look like this.

**Read More:** **How to Calculate Monthly Mortgage Payment in Excel (2 Ways)**

## Things to Remember

- Do not forget to repay a minimum amount on all loans
- Use the
**absolute reference**to lock a cell.

## Conclusion

In this article, I have explained how to create a snowball payment calculator in **Excel**. I hope it helps everyone. If you have any suggestions, ideas, or feedback, please feel free to comment below. Please visit **Exceldemy** for more useful articles like this.