Debt Avalanche Calculator
Calculate savings using the debt avalanche method
About this calculator
The Debt Avalanche Calculator helps you create an optimized debt repayment strategy by prioritizing debts with the highest interest rates first. This method minimizes the total interest paid over time, potentially saving thousands of dollars compared to minimum payments or other approaches. By calculating exact payment schedules and showing projected savings, this tool provides a clear roadmap to becoming debt-free faster while maximizing your financial efficiency.
How to use
Enter all your debts including balances, interest rates, and minimum payments. Input any extra amount you can allocate toward debt repayment each month. The calculator will automatically prioritize your debts by interest rate and show your optimized payment schedule, total interest savings, and debt-free timeline.
Frequently asked questions
How does debt avalanche differ from debt snowball?
Debt avalanche prioritizes highest interest rates first, while debt snowball targets smallest balances first. Avalanche typically saves more money on interest payments.
Should I include all types of debt in this calculator?
Include high-interest debts like credit cards and personal loans. Consider excluding low-interest debts like mortgages unless they're your priority focus.
What if I can't make extra payments beyond minimums?
The calculator still shows your payoff timeline with minimum payments only, helping you understand the true cost of your current debt situation.