Debt Avalanche Calculator
Pay off multiple debts by targeting the highest interest rate first — see your debt-free date and the total interest the avalanche method saves.
How it works
Each month: add interest (balance × APR ÷ 12) to every debt, pay all minimums, then send the leftover — minimums freed up plus your extra — to the highest-APR debt until it is gone, then the next-highest.
The debt-avalanche method orders your debts by interest rate and throws every spare dollar at the highest-rate balance first, while paying minimums on the rest. Because it attacks the most expensive interest first, it is mathematically the cheapest way to get out of debt — it always pays the least total interest of any ordering. The trade-off is motivational: if your highest-rate debt is also your largest, it can take a while to see the first balance disappear, which is where the snowball method’s quick wins compete.
Worked example
With balances of $5,000 at 22%, $8,000 at 15% and $3,000 at 27%, and $200 extra on top of $335 in minimums, the avalanche pays the 27% card first, then the 22%, then the 15%. It clears all three in roughly 2 years 5 months and costs the least interest of any payoff order — a few hundred dollars less than the snowball.
Frequently asked questions
How is avalanche different from snowball?
Avalanche pays the highest interest rate first to minimize total interest; snowball pays the smallest balance first to score quick psychological wins. Avalanche is cheaper on paper, snowball is often easier to stick with. Both pay minimums on every other debt and roll freed-up payments forward.
Does the avalanche method always save the most money?
Yes — ordering by interest rate is provably the lowest-total-interest strategy for a fixed monthly budget. The savings versus snowball can be small or large depending on how your balances and rates line up, but avalanche never costs more in interest.
What if my minimum payments don’t cover the interest?
Then the balance grows and the debt never clears on its own — a sign of a debt spiral. You need a larger monthly payment, a lower rate through a balance transfer or consolidation, or credit counseling. This calculator flags that case instead of showing an impossible payoff.
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This is an educational estimate, not financial advice. Lenders use their own rounding, fees, mortgage-insurance rules and credit terms — confirm exact figures with your lender or a licensed advisor.