Debt Avalanche Calculator
Pay off your highest interest debts first. Save the most money and get out of debt with the mathematically optimal strategy.
Your Debts
Enter all your debts. The avalanche method pays highest interest rates first for maximum savings.
This amount goes toward the highest interest debt each month
Debt-Free Date
Feb 2029
37 months
Total Interest
$4,034
on $15,500 debt
Interest Saved
$187,401
vs minimum payments
vs Snowball
-$0
less interest paid
Avalanche Payoff Order
Debts sorted by interest rate (highest first) - mathematically optimal order
Your monthly debt payment budget: $550
($350 minimums + $200 extra)
Avalanche vs Snowball Comparison
See how the avalanche method compares to the snowball method for your specific debts
Avalanche (Your Choice)
Snowball (Comparison)
By using the avalanche method, you'll save -$0 in interest compared to the snowball method.
Payment Schedule
What is the Debt Avalanche Method?
The debt avalanche method is a debt reduction strategy where you pay off debts from highest interest rate to lowest, regardless of balance. This approach minimizes the total interest you pay over time, making it the mathematically optimal way to eliminate debt.
How the Avalanche Works
- 1List all debts by interest rate (highest first)
Focus on APR, not balance
- 2Make minimum payments on all debts
Keep all accounts current
- 3Put all extra money toward highest interest debt
This stops the most interest from accruing
- 4When paid off, roll payment to next highest rate
The "avalanche" of payments grows
- 5Repeat until all debt is gone!
You'll pay the least total interest
Why the Avalanche Method Saves the Most
📐 The Math is Clear
High-interest debt grows faster. A 24% APR credit card adds 2% to your balance every month. By eliminating these debts first, you stop the fastest-growing balances in their tracks.
- ✓Minimizes total interest paid
- ✓Often faster total payoff time
- ✓Most efficient use of every dollar
💡 Example Savings
With $15,000 in mixed debt and $500/month to pay, the avalanche method typically saves $500-$2,000 compared to the snowball method.
- ✓Savings increase with higher rate gaps
- ✓Bigger savings with larger balances
- ✓Savings compound over time
Avalanche vs Snowball: Real Numbers
Same three debts, same $500/month budget—different strategies, different outcomes:
| Method | Total Interest | Payoff Time | Total Paid |
|---|---|---|---|
| Avalanche | $2,847 | 35 months | $17,847 |
| Snowball | $3,241 | 36 months | $18,241 |
| Savings with Avalanche | $394 | 1 month | $394 |
Is the Avalanche Method Right for You?
✓ Avalanche is Great If You...
- • Are motivated by saving money
- • Can stay disciplined without quick wins
- • Have significant rate differences between debts
- • Want to pay the absolute minimum interest
- • Are comfortable with spreadsheets and math
- • Have a stable income and can commit long-term
⚠️ Consider Snowball If You...
- • Need psychological wins to stay motivated
- • Have struggled with debt payoff before
- • Have similar interest rates across debts
- • Value simplicity over optimization
- • Feel overwhelmed by multiple accounts
- • Need early victories to build confidence
Pro tip: Run both calculators with your actual debts. If the savings are small (under $200), choose whichever method you'll actually stick with. The best method is the one you'll follow through to completion.
Tips for Avalanche Success
🎯 Stay Focused on Savings
- • Track your running interest savings
- • Visualize what you'll do with the money saved
- • Remember: every extra dollar saves future interest
- • Calculate monthly interest saved as motivation
📊 Track Your Progress
- • Update your calculator monthly
- • Celebrate interest rate milestones
- • Note when you pay off your first high-rate debt
- • Share progress with accountability partners
💪 Build Discipline
- • Automate your payments
- • Set calendar reminders
- • Keep your "why" visible
- • Review progress weekly
🔧 Optimize Further
- • Request rate reductions from creditors
- • Consider balance transfers strategically
- • Refinance if you can get better rates
- • Add windfalls to highest-rate debt
Frequently Asked Questions
What if my highest rate debt is also my largest balance?
This is actually the ideal scenario for the avalanche method! You'll be stopping the largest amount of interest from accruing. Yes, it will take longer to pay off this first debt, but you'll save significantly more money in the long run. Stay focused on the interest savings rather than account count.
Should I include 0% APR debts?
Yes, but they go last in your avalanche order. Pay minimum payments until all interest-bearing debts are gone, then tackle the 0% debt. Just watch the promotional period end date—if interest will be charged retroactively, factor that into your strategy.
What about tax-deductible interest like mortgages?
Mortgages are typically excluded from both avalanche and snowball methods. Focus on non-deductible consumer debt first. If you want to include your mortgage, use its effective after-tax rate (rate × (1 - marginal tax rate)) for comparison purposes.
How do I handle variable rate debts?
Use current rates and re-evaluate monthly. If a variable rate debt increases significantly, it may move up in your priority list. The avalanche method is flexible—just re-sort by current rates whenever they change substantially.
I'm losing motivation. Should I switch to snowball?
Consider a hybrid approach: if you have a small debt you could pay off quickly for a psychological boost, tackle it first, then return to the avalanche. The interest cost of one "quick win" is usually minimal. Remember: any method you complete beats one you abandon.