Debt Avalanche Calculator

Estimate payoff time and interest when extra payment targets the highest-interest debt first

Your result will appear here.

About the Debt Avalanche Calculator

Debt Avalanche Calculator organizes multiple debts so extra money is directed to the highest interest rate first while minimum payments continue on the others. The method is designed to reduce interest cost efficiently.

Avalanche repayment can take longer to produce the first visible account payoff than a debt snowball if the highest-rate debt has a large balance. The mathematically cheaper method is not always the easiest behaviorally.

How to Use the Debt Avalanche Calculator

  1. Enter each debt balance, annual interest rate and minimum payment.
  2. Enter the extra monthly amount available.
  3. Sort debts from highest interest rate to lowest for avalanche order.
  4. Calculate the payoff schedule and roll each cleared payment into the next-highest-rate debt.

How the Calculation Works

Each period, interest is applied to outstanding balances using the calculator’s periodic model. Minimum payments continue on every debt, while the extra amount goes to the remaining debt with the highest rate.

When a debt is cleared, its payment is added to the amount directed at the next debt. This concentrates principal reduction where each outstanding dollar is currently most expensive.

Worked example

Debt Avalanche Calculator Worked Example

Three debts at 24%, 12% and 6% APR

The 24% debt receives the extra payment first regardless of whether its balance is larger than the others. After it is cleared, that payment rolls to the 12% debt.

Result guide

Understanding Your Debt Avalanche Calculator Result

The avalanche generally minimizes modeled interest when rates and payment assumptions stay constant. It may not provide the fastest first account closure.

Before you rely on the answer

Assumptions and Limitations

  • Rates and minimum payments remain constant.
  • No new borrowing is added.
  • Extra payment is available each period as entered.

Practical tip

Using This Result in Practice

If motivation is a concern, compare the avalanche and snowball schedules side by side. The interest savings may be worth the slower first win, or the behavioral simplicity of the snowball may matter more to the person repaying the debt.

Related calculations

Useful Calculations to Continue With

If you want to prioritize the smallest balance for quicker account closures, use the Debt Snowball Calculator.

If there is only one revolving card balance, use the Credit Card Payoff Calculator instead.

Authoritative references

Useful Official Sources

For standards, definitions or real-world guidance related to this calculation, these primary sources may be useful:

Common questions

Debt Avalanche Calculator FAQ

Which debt is paid first in the avalanche method?

The remaining debt with the highest interest rate.

Does avalanche usually save interest?

Yes, under standard assumptions it generally minimizes interest compared with balance-first ordering.

What happens after a debt is cleared?

Its payment is rolled into the next-highest-rate debt.