Debt Avalanche Calculator
Calculate debt payoff using the avalanche method, prioritizing highest interest rate debts first
About this calculator
The Debt Avalanche Calculator helps you create an optimal debt payoff strategy by prioritizing debts with the highest interest rates first. This method minimizes the total interest paid over time, potentially saving you hundreds or thousands of dollars compared to other repayment approaches. By focusing extra payments on high-interest debt while maintaining minimum payments on others, you'll eliminate costly debt faster and achieve financial freedom more efficiently.
How to use
Enter all your debts including current balances, interest rates, and minimum monthly payments. Add any extra amount you can afford to pay toward debt each month. The calculator will show your optimal payment strategy, prioritizing highest-rate debts first, along with your total payoff timeline and interest savings.
Frequently asked questions
How does debt avalanche differ from debt snowball?
Debt avalanche prioritizes highest interest rates first, while snowball focuses on smallest balances first. Avalanche typically saves more money on interest payments.
Should I always use the avalanche method?
While avalanche saves the most money mathematically, some prefer snowball for psychological wins. Choose the method you'll stick with consistently.
What if I have debts with similar interest rates?
When rates are very close, consider paying off the smallest balance first for motivation, or the largest to free up more monthly cash flow.