Debt Avalanche Calculator

Enter up to 3 debts and optional extra payment to see avalanche payoff timeline (highest interest first).

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Avalanche Method (simplified monthly): 1) Pay minimums on all debts 2) Apply extra payment to the debt with highest APR 3) When a debt pays off, roll its payment into the next highest APR debt 4) Repeat until all debts are cleared Monthly Interest = Balance * (APR / 12) Principal Payment = Payment - Interest New Balance = Old Balance - Principal Payment
Example: Debt1 $1,000 @ 18% APR min $50 Debt2 $3,000 @ 22% APR min $75 Extra $100/month Avalanche targets Debt2 first (22% > 18%). Total payment to Debt2 = $75 + $100 = $175/month After Debt2 is paid, roll $175 into Debt1. Output: months to debt-free and total interest saved.

How does the debt avalanche method work?

Pay minimum payments on all debts, then direct any extra money to the debt with the highest interest rate first. After payoff, roll that payment into the next highest interest rate debt.

Avalanche vs snowball method?

Avalanche prioritizes highest APR (mathematically optimal, saves most interest). Snowball prioritizes smallest balance (psychological wins). Avalanche typically saves more money overall.

How much interest can I save with avalanche?

Avalanche saves the most interest compared to other methods because it targets high-APR debt first. Savings vary but can be hundreds to thousands of dollars.

What if I have equal interest rates?

If multiple debts have the same APR, prioritize the one with the smallest balance for psychological momentum while maintaining mathematical optimization.

Should I include all types of debt?

Yes, include all debts (credit cards, personal loans, student loans). The avalanche method works for any debt with an interest rate. Mortgages can be included if you plan to pay extra.