About the Debt Avalanche Calculator
This debt avalanche calculator plans your payoff using the avalanche method: pay the minimum on every debt and send every extra dollar to the debt with the highest interest rate. When that debt is cleared, its payment moves to the next-highest rate, and so on. Enter up to four debts — balance, APR and minimum payment — plus the extra amount you can commit each month.
With a fixed monthly budget, the avalanche is almost always the cheapest order in which to repay several debts, so it suits anyone who wants to minimise total interest and finish as early as possible. You will see your payoff order, the month each debt is cleared, your debt-free date and the total interest.
To make the choice concrete, the calculator also runs the snowball method (smallest balance first) and a minimum-payments-only plan on the same debts, and shows how much interest and time the avalanche saves against each. Interest is charged monthly at APR ÷ 12 and your total monthly budget stays fixed until everything is paid.
With the default inputs, the months to debt-free is 2 yr 5 mo. Change any value above to recalculate instantly.
How to use the debt avalanche calculator
- 1Enter each debt’s name, balance, APR and minimum payment (leave unused rows at 0).
- 2Enter the extra amount you can pay every month.
- 3Read your debt-free date, payoff order and total interest.
- 4Compare the interest saved against the snowball and minimum-only plans.
- 5Each month, pay minimums everywhere and send the extra to the first debt in the order.
Formula and method
Every month the calculator charges interest on each open debt (balance × APR ÷ 12), pays each one its minimum, then sends the rest of your fixed monthly budget to the open debt with the highest APR (ties go to the smaller balance). Because the total budget never drops, each paid-off debt’s minimum rolls into the next target automatically.
Paying the highest rate first removes the most expensive interest soonest, which is why the avalanche almost always costs the least total interest for a given budget (rare exceptions can occur when minimum payments differ sharply between debts). The snowball and minimum-only plans are simulated with identical assumptions so the savings shown are like-for-like. Card issuers use the average daily balance, so real statements may differ slightly.
- Budget
- Sum of all minimum payments plus your extra monthly amount
- APR
- Annual percentage rate of each debt
- extra
- Additional money you commit every month on top of minimums
Worked examples
Four debts with $250 extra a month
The $890 monthly budget attacks the 26.99% store card first (gone in month 9), then the 22.99% Visa (month 24); the 0% medical bill clears on minimums in month 18 and the car loan finishes in month 29. Total interest is about $3,893 — $210 less than the snowball and $6,355 less than paying minimums for 75 months.
Two cards and an auto loan with $200 extra
The 24.99% card is cleared in month 14, the 19.99% card in month 16 and the auto loan in month 35. Total interest is about $2,692, around $65 less than the snowball order with the same $645 monthly budget.
High-rate rewards card with $500 extra
Targeting the 29.99% card first clears it in month 14. Everything is paid in 32 months with about $6,612 of interest — roughly $630 less than the snowball and over $12,000 less than the $18,863 that minimum payments alone would cost.
Frequently asked questions
What is the debt avalanche method?+
You pay the minimum on every debt and put all extra money toward the debt with the highest interest rate. Once it is paid off, that payment rolls to the next-highest rate until every debt is gone.
How much does the avalanche save compared with the snowball?+
It depends on how different your rates and balances are. When the smallest debt also has the highest rate the two methods are identical; when a large balance carries the top rate the avalanche can save hundreds or thousands of dollars.
Does the avalanche method get me out of debt faster?+
With the same monthly budget, the avalanche usually finishes at the same time or a little sooner than the snowball because less of each payment is lost to interest. The difference is often a month or two at most.
What about 0% promotional balances?+
Enter the promotional APR as 0%. Just remember the avalanche will leave it until last, so make sure it will be cleared before the promo ends or re-run the plan with the post-promo rate.
Should I use extra money on debt or savings first?+
Many planners suggest keeping a small emergency fund first so a surprise bill does not go back on a card, then sending extra cash to high-interest debt, since a 20%+ APR is a guaranteed return few investments beat.
Results are estimates for educational purposes and are not financial advice. Rates, fees and terms vary — confirm with your lender or a licensed advisor before making decisions.