Debt Avalanche Calculator
Pay off high-interest debts first to minimize total interest and save money
Your Debts
Debt #1
Debt #2
Debt Summary
Avalanche Method Effect
Potential Savings with Debt Avalanche
| Method | APR | Monthly Payment | Payoff Term | Total Payable | Total Interest |
|---|---|---|---|---|---|
| Current Method | 11.00%* | varied | 22 months | $5,463.389 | $-536.611 |
| Avalanche Method | 6.00% | $300 | 23 months | $6,690.101 | $690.101 |
* For your current debt, without avalanche acceleration, the APR is estimated by the weighted average procedure.
How to Apply Debt Avalanche Method:
Keep the total monthly payment constant by reallocating the payment amount to the debt with the highest interest rate after paying off one of your debts.
Debt Avalanche Tips
List by Interest Rate
Order debts from highest to lowest interest rate
Target Highest Rate
Put all extra money toward the highest rate debt
Rollover Payments
When one debt is paid off, apply that payment to the next highest rate
Stay Consistent
Maintain the same total monthly payment throughout
Snowball vs Avalanche
Debt Avalanche
Saves the most money by targeting high-interest debts first
Debt Snowball
Builds momentum by paying off smallest balances first
Best Choice
Avalanche saves more money; Snowball provides more motivation
Understanding the Debt Avalanche Method
What is the Debt Avalanche Method?
The debt avalanche method is an accelerated debt payoff strategy that prioritizes paying off debts with the highest interest rates first, while maintaining minimum payments on all other debts.
How It Works
- ✓List all debts by interest rate (highest to lowest)
- ✓Make minimum payments on all debts
- ✓Put all extra money toward the highest-rate debt
- ✓When paid off, roll that payment to the next highest rate
Avalanche vs. Snowball Method
Debt Avalanche
Priority: Highest interest rate first
Advantage: Saves the most money on interest
Best for: People motivated by financial optimization
Debt Snowball
Priority: Smallest balance first
Advantage: Quick wins and psychological momentum
Best for: People who need motivational boosts
Which to Choose?
Choose avalanche to save the most money, or snowball if you need psychological wins to stay motivated.
List & Order
List all debts by interest rate from highest to lowest
Target & Pay
Attack the highest-rate debt with extra payments
Roll & Repeat
Roll payments to next debt when one is paid off