Debt
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.
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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
Projection
Distribution view
Milestones
Decision cues
Breakdown
Cost mix
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!
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