12 Month Budget Example

Name
Section

$ per/hr

PT Hours

Brother hopeful
Sister hopeful
Total

Income
Combined Take Ho
Expenses
Food
Lessons for kids
laundry
Dry cleaning
Gifts
life insurance
medical insurance
car insurance *2
internet
cable tv
ulitities
home phone
cell pnone program
Gas
Bowling league
newspaper
miscellaneous
tithing/ offering
charities
credit card #1
credit card #2
credit card #3
credot union loan
Car loan
Gas crdot card
Medical Bill
2nd Mortgage
1st Mortgage
Total Expenses

Mothly
$5,150

$450
$155
$30
$20
$15
$70
$200
$120
$25
$95
$275
$75
$85
$170
$85
$35
$30
$615
$35
$158.00
$34.67
$274.37
$280.85
$200.00
$92.72
$65.07
$582.82
$1,149.00
$5,423

Surplus / (Deficit)

-$273

Total Savings/(Debt

-$273

Income Calculations
mothly salary
FT Hours
$4,800
$350
$5,150

FT Salary

Aug Salary

Name Andria Yun, Preston, Mary Crosby, Ryan Kim

Section

$ per/hr

PT Hours

Income Calculations
PT Salary FT Hours

FT Salary

Brother Hopeful
Sister Hopeful
Total

Income
Gross Combined Income
Combined Take Home Pay

$5,150

Expenses
gas
cell phone program
Utilities
internet
car insurance
Groceries
laundry
misc
life insurance
mortgage payment
tithing and offerings
medical insurance
Total Expenses

$85
$200
$25
$60
$300
$30
$30
$70
$1,732
$615
$200
$3,432

Surplus / (Deficit)

$4,451

Total Savings/(Debt)

$4,451

$85

1. We first decided to get rid of the new car so we don't ha

2. Eliminate unnecessary expenses (lessons for children,

3. We cut down groceries expense to $300 and utilities to

4. Reogranized debt payments from highest interest to low

5. Sister Hopeful got a job as a waitress(night shift) and le

TOTAL

$4,800
$3,083
$7,883

rid of the new car so we don't have to pay 200$ monthly car loan payment. Also we can cut off half of the gas expense and auto insurance.
expenses (lessons for children, dry cleaing, gifts, cable TV, home phone service, bowling league, newspaper, donations)

s expense to $300 and utilities to 200$

ments from highest interest to lowest interest

b as a waitress(night shift) and let her parents to babysit. She earns $3083 a month including the tips
$1,813.68
1248.12
$565.56
$1,311.41

xpense and auto insurance.

remaining dollars after paying all the minimum debt payments

total debt amount of credit card 2
remianing dollars after paying off the credit card#2 debt
remianing medical debt

Debt Reduction Calculator

Balance Date:

7/5/2015

Creditor Information Table

Row
Creditor
Balance
1
Credit Card #1
6,000.00
2
Car Loan
5,200.00
3
Gas Credit Card
1,969.78
4
Credit Card #2
1,000.00
5
Credit Card #3
12,619.08
6
Credit Union Loan
19,225.00
7
Medical Bill
1,876.97
8
2nd Mortgage
49,612.40
9
1st Mortgage
119,412.57
10
Totals:
216,915.80

Monthly Payment
Initial Snowball

Rate
12.00%
7.00%
12.00%
15.00%
11.00%
6.00%
15.00%
9.50%
6.00%

Payment
158.00
200.00
92.72
34.67
274.37
280.85
68.07
582.82
1,149.00

Custom
3
7
4
1
5
8
2
6
9

2,840.50

4,451.00 .
1,610.50

Strategy:

Avalanche (Highest Interest First)

Choose a strategy
2

Creditors in
Chosen Order
Credit Card #2
Medical Bill
Credit Card #1
Gas Credit Card
Credit Card #3
2nd Mortgage
Car Loan
Credit Union Loan
1st Mortgage

Original
Balance
1,000.00
1,876.97
6,000.00
1,969.78
12,619.08
49,612.40
5,200.00
19,225.00
119,412.57
-

Total Interest Paid:

Interest
Paid
12.50
38.46
223.42
105.04
984.34
7,937.49
455.93
2,578.05
24,573.97
-

$4,500.00
[42]
$4,000.00

Snowball Growth Chart

$3,500.00
$3,000.00
$2,500.00
$2,000.00
$1,500.00
$1,000.00
$500.00
$-

Snowball
Interest Due

Month Paid
Of
Aug-15
Sep-15
Dec-15
Jan-16
Jul-16
Jan-18
Dec-17
May-18
May-20

36,909.20 (Lower is Better)

Results are only estimates

$5,000.00

Months to
Pay Of
1
2
5
6
12
30
29
34
58
-

Snowball Growth Chart

Interest-only
60.00
30.34
19.70
12.50
115.68
96.13
23.47
392.77
597.07
-

Choose a strategy

.
.
.
.
.
.
.
.
.
.

Debt Snowball Payment Schedule

2007-2015 Vertex42 LLC

Results are only estimates. Edit only the yellow cells.

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Strategy: Avalanche (Highest Interest First)

Monthly Payment: 4451.00
Creditor:
Balance:
Rate:
Base Payment:
Months to Pay Off:
Month Paid Off:
Total Interest:
Error Code:

Credit Card #2

Medical Bill

1,000.00

Credit Card #1

1,876.97

Gas Credit Card

6,000.00

Credit Card #3

1,969.78

2nd Mortgage

12,619.08

Car Loan

49,612.40

Credit Union Loan

5,200.00

12.00%

12.00%

11.00%

34.67

68.07

158.00

92.72

274.37

582.82

200.00

280.85

1,149.00

5
Dec-15

6
Jan-16

12
Jul-16

30
Jan-18

29
Dec-17

34
May-18

58
May-20

12.50
.

38.46
.

Total Interest: $

223.42
.

105.04
.

984.34
.

7,937.49
.

6.00%

15.00%

2
Sep-15

7.00%

119,412.57

15.00%

1
Aug-15

9.50%

1st Mortgage

19,225.00

455.93
.

6.00%

2,578.05
.

24,573.97
.

36,909.20

Monthly Payments
No.

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58

Month
Jul-15
Aug-15
Sep-15
Oct-15
Nov-15
Dec-15
Jan-16
Feb-16
Mar-16
Apr-16
May-16
Jun-16
Jul-16
Aug-16
Sep-16
Oct-16
Nov-16
Dec-16
Jan-17
Feb-17
Mar-17
Apr-17
May-17
Jun-17
Jul-17
Aug-17
Sep-17
Oct-17
Nov-17
Dec-17
Jan-18
Feb-18
Mar-18
Apr-18
May-18
Jun-18
Jul-18
Aug-18
Sep-18
Oct-18
Nov-18
Dec-18
Jan-19
Feb-19
Mar-19
Apr-19
May-19
Jun-19
Jul-19
Aug-19
Sep-19
Oct-19
Nov-19
Dec-19
Jan-20
Feb-20
Mar-20
Apr-20
May-20
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Snowball

1610.50
1645.17
1713.24
1713.24
1713.24
1871.24
1963.96
1963.96
1963.96
1963.96
1963.96
2030.37
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2238.33
2382.40
2599.09
3021.15
3021.15
3021.15
3021.15
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
3302.00
4333.00

Additional

Credit Card #2

1012.50
-

Medical Bill

700.74
1214.69
-

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Credit Card #1

158.00
656.55
1871.24
1871.24
1666.39
-

Gas Credit Card

92.72
92.72
92.72
92.72
297.57
1406.37
-

Credit Card #3

274.37
274.37
274.37
274.37
274.37
831.96
2238.33
2238.33
2238.33
2238.33
2238.33
207.96
-

2nd Mortgage

582.82
582.82
582.82
582.82
582.82
582.82
582.82
582.82
582.82
582.82
582.82
2613.19
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2821.15
2965.22
422.06
-

Car Loan

200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
200.00
55.93
-

Credit Union Loan

280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
280.85
2879.94
3302.00
3302.00
3302.00
872.46
-

1st Mortgage

1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
1149.00
3578.54
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
4451.00
118.00
-

END BALANCE

216915.80
213812.41
210678.72
207515.63
204325.90
201109.26
197865.49
194594.80
191298.12
187975.25
184625.95
181250.01
177847.21
174419.86
170968.04
167491.57
163990.27
160463.94
156912.41
153335.49
149732.99
146104.74
142450.54
138770.18
135063.49
131330.28
127570.33
123783.46
119969.47
116128.15
112259.02
108369.31
104460.16
100531.46
96583.12
92615.04
88627.12
84619.26
80591.36
76543.32
72475.04
68386.42
64277.35
60147.74
55997.48
51826.47
47634.60
43421.77
39187.88
34932.82
30656.48
26358.76
22039.55
17698.75
13336.24
8951.92
4545.68
117.41
Page 8 of 21

Monthly Payments
No.

Month
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Snowball

Additional

Credit Card #2

Medical Bill
-

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Credit Card #1
-

Gas Credit Card

-

Credit Card #3

2nd Mortgage
-

Car Loan
-

Credit Union Loan

-

1st Mortgage

END BALANCE
-

Page 9 of 21

Monthly Payments
No.

Month
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Snowball

Additional

Credit Card #2

Medical Bill
-

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Credit Card #1
-

Gas Credit Card

-

Credit Card #3

2nd Mortgage
-

Car Loan
-

Credit Union Loan

-

1st Mortgage

END BALANCE
-

Page 10 of 21

Monthly Payments
No.

Month
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A
#N/A

Snowball

Additional

Credit Card #2

Medical Bill
-

http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Credit Card #1
-

Gas Credit Card

-

Credit Card #3

2nd Mortgage
-

Car Loan
-

Credit Union Loan

-

1st Mortgage

END BALANCE
-

Page 11 of 21

HELP
Getting Started

Step 1:

Step 2:
Step 3:

Debt Reduction Strategies

Other Tips and Information

Additional Help

SEE ALSO
SEE ALSO
TIPS

 2007-2015 Vertex42 LLC

etting Started
Visit the debt reduction calculator web page and watch the demo video.
http://www.vertex42.com/Calculators/debt-reduction-calculator.html

Complete the Creditor Information Table. Read the section "Using the Debt Reduction Calculator"
on the above web page. Look for more information about each column in the table header's cell
comments.
Enter a Total Monthly Payment. See the cell comment for more information.
Choose a Payoff Strategy. The various strategies are explained below.

ebt Reduction Strategies

Lowest Balance First: Gives you the benefit of the snowball effect, but you may pay more interest in
the end than Highest Interest First. The main benefit of this approach is the psychological effect of
seeing the number of debts disappear more quickly.

Highest Interest First: This strategy results in the lowest total interest, but depending on the balance
of your higher interest loans, it may take you longer to see your first loan/debt completely paid off. If
the difference in the total interest is not significant, than you may get more satisfaction from the
Lowest Balance First method.

Order Entered in the Table: You can use the sort feature (Data>Sort) to choose how you want the
snowball effect to work. For example, if you want to use a combination of Lowest Balance First AND
Highest Interest First, then first select the creditor information table (B7:F17), then go to Data>Sort,
and sort by Balance:Ascending and Rate:Descending (or vice versa).

Warning: If you are careful, you can rearrange the order of the entries in the creditor table by copying
or cutting and pasting, but if you insert a row above row 1 or after row 10, the formulas will be messed
up.
No Snowball: Select this option if you want to see how long it will take to pay off the debts without
maintaining a constant monthly payment. In some cases, you may find it will take more than 30 years
(resulting in errors in the spreadsheet).
Custom-Highest or Custom-Lowest: You can manually control the order the debts are paid by
entering numbers or formulas in the Custom column. For example, if you enter the values 1,2,3,5,4
then rows 4 and 5 will be swapped. You can enter your own formulas as well, whatever they might be.

her Tips and Information

Minimum Payments: This calculator does not provide the option of making only the minimum
monthly payments on credit cards or lines of credit. See tip #3 below.

Tip 1: If you want to use the Lowest Balance First method and you have two debts that are close to
the same balance but have very different interest rates, you may see a substantial reduction in the
total interest paid if you change the order of the two entries so that you pay the higher rate first. In that
case, try using the Order Entered in the Table strategy.

Tip 2: Like Tip 1, if you want to use the Highest Interest Rate method, and you have two debts with
similar rates but very different balances, you may want to change the order so that you pay off the
lower balance first. This may make very little difference in the total interest, but it can make you feel
better faster.
Tip 3: Update the Creditor Information Table every few months. Your minimum payments may
change over time as the balance in your accounts change, or if your interest rate changes. You may
be able to further reduce your overall interest and reduce the time to pay off your debts, by readjusting your minimum payments every few months. This would mean starting over with a fresh
template, entering the new Balance Date, and updating the Creditor Information Table.

Tip 4: Snowflaking is a popular term for making occasional extra payments above the normal
monthly payment. You can add debt "snowflakes" in the PaymentSchedule worksheet.

dditional Help
The link at the top of this worksheet will take you to the web page on vertex42.com that talks about
this template.

REFERENCES
Vertex42.com: Credit Card Payoff Calculator
Vertex42.com: Money Management Template
Vertex42.com: Spreadsheet Tips Workbook

007-2015 Vertex42 LLC

Debt Reduction Calculator

ebt Reduction Calculator

By Vertex42.com
http://www.vertex42.com/Calculators/debt-reduction-calculator.html

2007-2015 Vertex42 LLC

This spreadsheet, including all worksheets and associated content is a copyrighted work
under the United States and other copyright laws.
Do not submit copies or modifications of this template to any website or online template
gallery.
Please review the following license agreement to learn how you may or may not use this
template. Thank you.
Personal Use Only
http://www.vertex42.com/licensing/EULA_personaluse.html
Do not delete this worksheet. If necessary, you may hide it by right-clicking on the tab and
selecting Hide.

retirement age
current age
months left until Brother Hopeful retire
monthly contribution to 401k
$
balance in retirement account after 30years $

65
35
360
150.00
54,000.00