Debt Avalanche Calculator

How the Debt Avalanche Works

The debt avalanche method is the mathematically optimal way to pay off debt. You list your debts from highest interest rate to lowest, then put all your extra money toward the highest-rate debt while making minimum payments on everything else.

When that first debt is paid off, you redirect the freed-up payment to the next highest-rate debt. Over time, this approach saves you the most money in interest compared to any other ordering strategy.

When to Use This Calculator

This calculator is ideal if you:

• Want to pay the least amount of interest possible
• Are comfortable with a longer wait before your first debt disappears
• Are motivated by saving money rather than quick wins
• Have debts with significantly different interest rates

How to Use It

1. Enter each debt — name, balance, interest rate (APR), and minimum payment
2. Add your extra monthly payment — the more you can add, the bigger the savings
3. Click Calculate to see your optimized payoff plan

You’ll see your debt-free date, total interest paid, how much you’re saving versus minimum payments, and a detailed month-by-month schedule.

When Avalanche Saves the Most

The avalanche method shines when there’s a big spread between your interest rates. If you have a credit card at 24% APR and a student loan at 5%, the avalanche method will save you significantly more than snowball.

If all your rates are similar (within a few percentage points), the difference between avalanche and snowball is small — so pick whichever strategy you’ll actually stick with.

Frequently Asked Questions

How much more does avalanche save compared to snowball? It depends on your specific debts. Sometimes it’s hundreds of dollars, sometimes thousands. Use both our snowball and avalanche calculators to compare side by side.

What if I lose motivation because my first debt takes too long? That’s a real concern. The avalanche method can feel slow at first, especially if your highest-rate debt also has a large balance. If motivation is an issue, the snowball method might be a better fit — or try a hybrid approach.

Should I always use avalanche? Not necessarily. The “best” strategy is the one you follow through on. If the math motivates you, avalanche is the way to go. If you need early wins to stay committed, snowball works better in practice.

What about 0% promotional rates? If you have a balance transfer or promotional rate at 0%, the avalanche method will naturally put that debt last. Just make sure you’ll pay it off before the promotional period ends — some cards charge retroactive interest.