Debt Avalanche Calculator
The avalanche method targets your highest-interest debt first, minimising what you pay in total. Enter your debts below — the strategy is pre-set to Avalanche. You can switch to Snowball at any time to compare the two approaches.
Your Debts
| Debt Name | Balance ($) | APR (%) | Min. Payment ($) |
|---|
Payoff Settings
How the Math Works
Every month, for each debt, the calculator applies this formula:
interest = balance x (APR / 12 / 100) new_bal = balance + interest - payment_applied
payment_applied is at least the minimum payment for every debt. The focus debt (determined by your strategy) receives all leftover funds: extra payment + any freed minimums from debts already paid off.
- Snowball: focus = debt with the smallest current balance. Wins psychologically — quick wins keep you motivated.
- Avalanche: focus = debt with the highest APR. Wins mathematically — minimises total interest paid.
Variable: APR = Annual Percentage Rate entered by you.
Calculations assume a fixed APR throughout and that payments are made on the same day each month.
Actual results will vary with promotional rates, late fees, and payment timing.
Related Tools
- Debt Snowball Calculator — smallest balance first for quick motivation wins
- Snowball vs. Avalanche Comparison — side-by-side comparison on your debts
- Credit Card Payoff Calculator — credit-card focused payoff tool
- Debt Payoff Calculator — single-debt payoff timeline
Frequently Asked Questions
The debt avalanche method targets the debt with the highest APR (Annual Percentage Rate) first, regardless of balance size. Extra payments are applied to the highest-rate debt while minimums are paid on all others. When that debt is gone, the freed payment rolls to the next highest-rate debt. This strategy minimises the total interest you pay over time.
The savings vary by your specific debts. If your highest-APR debt also has a large balance, avalanche can save hundreds to thousands of dollars compared to snowball. Use the Snowball vs. Avalanche comparison page to calculate the exact difference for your situation.
Mathematically yes — the avalanche always pays equal or less total interest. But the snowball method delivers quicker wins by eliminating small balances fast, which helps some people stay motivated. The best strategy is the one you will stick with.
No. All calculations happen entirely in your browser. Nothing you enter is sent to any server or stored anywhere.
When a debt reaches $0, its minimum payment is automatically added to the extra payment pool and directed at the next highest-APR debt. This accelerating effect is what makes the avalanche so powerful as you progress.