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Debt Avalanche Calculator

Use the debt avalanche method to pay off your highest interest debts first and minimize total interest costs.

Enter your debts to see how the avalanche method works, targeting high-interest debt first while making minimum payments on everything else.

Debt

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Advanced housing costs

Example

The avalanche method targets the 22% debt first, then the 18% debt, saving the most money in interest compared to other methods.

Results

Time to payoff

3 years

Total interest

$3,143

Interest saved vs snowball

$407

Total debt$21,000
Minimum payments$650.00
Extra payment$200.00
Monthly total payment$850.00

Projection

Distribution view

Avalanche total interest
$3,143
Snowball total interest
$3,550

Milestones

Decision cues

Payoff orderDebt 2 → Debt 1 → Debt 3
Avalanche time3 years
Interest saved vs snowball$407

Breakdown

Cost mix

Total principal
$21,000
Total interest
$3,143
Total paid
$24,143

Result reading

The visual trend is moving up, with an approximate change of $407 across the period shown.

Planning cue

Use the output as a scenario test rather than a promise. Small input changes can materially change the result.

Avalanche is mathematically optimal for saving interest. But the best method is the one you'll actually stick with long-term!

How it works

What the result is showing you

These sections explain what the calculator measures, which assumptions matter most, and where the number can be misleading.

How the debt avalanche works

List your debts from highest interest rate to lowest, regardless of balance. Make minimum payments on everything, then put all extra money toward the highest interest debt. When it's paid off, roll that payment into the next one.

Mathematical optimization

The avalanche is mathematically optimal—it will almost always save you the most money in interest. This makes sense if you can stay motivated without the quick wins that the snowball method provides.

Can you combine both methods?

Absolutely! Some people use a hybrid approach. If you have one very small debt, pay it off first for a quick win, then switch to avalanche for the rest. The best method is the one you'll actually stick with.

FAQ

Frequently asked questions

Quick answers to the questions people ask most about this calculator.

Why pay highest interest first?

Higher interest debts cost you more each month. Eliminating them first reduces the total interest you pay over time and frees up more money for other goals.

Should I choose avalanche or snowball?

Choose avalanche if you want to minimize interest and can stay motivated. Choose snowball if you need quick wins to stay on track. We have calculators for both so you can compare the difference!

People also search for

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