diff --git a/core/src/main/scala/cats/Foldable.scala b/core/src/main/scala/cats/Foldable.scala
index b6cd352ba66..220068ba4c6 100644
--- a/core/src/main/scala/cats/Foldable.scala
+++ b/core/src/main/scala/cats/Foldable.scala
@@ -379,11 +379,38 @@ object Foldable {
     loop()
   }
 
+  /**
+   * Implementation of [[foldM]] which can short-circuit for
+   * structures with an `Iterator`.
+   *
+   * For example we can sum a `Stream` of integers and stop if
+   * the sum reaches 100 (if we reach the end of the `Stream`
+   * before getting to 100 we return the total sum) :
+   *
+   * {{{
+   * scala> import cats.implicits._
+   * scala> type LongOr[A] = Either[Long, A]
+   * scala> def sumStream(s: Stream[Int]): Long =
+   *      |   Foldable.iteratorFoldM[LongOr, Int, Long](s.toIterator, 0L){ (acc, n) =>
+   *      |     val sum = acc + n
+   *      |     if (sum < 100L) Right(sum) else Left(sum)
+   *      |   }.merge
+   *
+   * scala> sumStream(Stream.continually(1))
+   * res0: Long = 100
+   *
+   * scala> sumStream(Stream(1,2,3,4))
+   * res1: Long = 10
+   * }}}
+   *
+   * Note that `Foldable[Stream].foldM` uses this method underneath, so
+   * you wouldn't call this method explicitly like in the example above.
+   */
   def iteratorFoldM[M[_], A, B](it: Iterator[A], z: B)(f: (B, A) => M[B])(implicit M: Monad[M]): M[B] = {
-    val go: ((B, Iterator[A])) => M[Either[(B, Iterator[A]), B]] = { case (b, it) =>
-      if (it.hasNext) M.map(f(b, it.next))(b1 => Left((b1, it)))
+    val go: B => M[Either[B, B]] = { b =>
+      if (it.hasNext) M.map(f(b, it.next))(Left(_))
       else M.pure(Right(b))
     }
-    M.tailRecM((z, it))(go)
+    M.tailRecM(z)(go)
   }
 }