🏔️ Debt Avalanche Calculator
Pay off your debts from highest to lowest interest rate and save the maximum amount on interest charges.
Your Debts
Debt 1
Debt 2
Debt 3
Why Use This Calculator?
Maximum Interest Savings
Mathematically optimal debt payoff strategy that minimizes total interest paid—often saving thousands compared to other methods.
Faster Debt Freedom
By eliminating high-interest debt first, more of each payment goes to principal, accelerating your path to debt-free status.
Clear Payoff Roadmap
See exactly which debt to focus on and when each will be paid off, removing guesswork from your debt elimination journey.
Disciplined Approach
Logic-driven method keeps you focused on the most financially beneficial strategy, even when emotions tempt you otherwise.
Rollover Momentum
As each debt is paid off, roll that payment to the next debt, creating an "avalanche" effect that compounds your progress.
Flexible Strategy
Works with any combination of debts—credit cards, personal loans, medical bills—as long as you know the interest rates.
Step-by-Step Guide
List All Your Debts
Write down every debt with its balance, APR, and minimum monthly payment. Don't skip any—medical bills, buy-now-pay-later, everything.
Example:
Example: Card 1 ($5,000, 22% APR, $100 min), Card 2 ($3,000, 18% APR, $60 min), Loan ($8,000, 12% APR, $200 min)
Rank by Interest Rate (Highest First)
Sort your debts from highest to lowest APR. This is your attack order—the avalanche priority list.
Example:
Example: 1) Card 1 (22%), 2) Card 2 (18%), 3) Personal Loan (12%)
Calculate Total Extra Payment
Determine how much extra you can afford beyond all minimum payments. Be realistic but aggressive.
Example:
Example: Total minimums $360, budget allows $560/month = $200 extra available
Pay Minimums on All But Highest APR
Continue paying the minimum on all debts except your #1 highest-rate debt. This avoids late fees and credit damage.
Example:
Example: Pay $60 to Card 2 (min), $200 to Loan (min), focus extra on Card 1
Attack Highest Rate with Extra Payment
Add your entire extra payment to the minimum on the highest-rate debt. This debt gets minimum + extra every month.
Example:
Example: Card 1 gets $100 (min) + $200 (extra) = $300/month total
Roll Payment to Next Debt When Paid Off
When your highest-rate debt is eliminated, add its full payment to the next highest-rate debt. Don't reduce your monthly debt payment.
Example:
Example: Card 1 paid off, now pay Card 2: $60 (min) + $300 (Card 1's payment) = $360/month
Continue Until All Debts Eliminated
Repeat the rollover process. Each debt gets paid faster than the last as the avalanche builds momentum.
Example:
Example: After Card 2, entire $560/month goes to Loan, finishing years early
Track Progress and Celebrate Milestones
Monitor interest saved and debt eliminated. Celebrate each debt payoff, even if they're spread out, to maintain motivation.
Example:
Example: "Saved $2,500 in interest!" or "Down to 2 debts from 5!"
Real-World Examples
Young Professional (3 Credit Cards)
Result:
Medical Debt + Credit Cards
Result:
Aggressive Debt Elimination
Result:
Expert Tips & Strategies
Avalanche Saves More Money Than Snowball
While snowball provides quick wins, avalanche typically saves $500-3,000+ in interest on mid-sized debt portfolios. On $20,000 debt with mixed rates, avalanche can save 6-12 months of payments compared to snowball.
Even Small Extra Payments Make Huge Differences
Adding just $100/month to $10,000 debt at 20% APR reduces payoff time from 10 years to 5.5 years and saves $6,000 in interest. Don't wait until you can afford large extra payments—start with what you have.
Combine with Balance Transfers for Max Savings
Transfer your highest-rate balances to a 0% APR promotional card (12-18 months), then use avalanche on remaining debts. This eliminates interest on transferred amounts, multiplying your savings.
Roll Every Dollar to the Next Debt
When a debt is paid off, don't reduce your monthly debt payment—roll the entire amount to the next debt. This creates exponential acceleration. Your last debt might get paid 5× faster than your first.
Negotiate Lower Interest Rates
Call creditors and request rate reductions, especially if you have good payment history. Even dropping from 22% to 18% APR saves hundreds. Say: "I'm considering a balance transfer—can you offer a better rate?"
Don't Add New Debt During Avalanche
Freeze or cut up cards you're paying off. New charges undermine progress and add interest charges. Use a debit card or cash-only budget until debts are eliminated.
Track Interest Saved as Motivation
Instead of focusing on how long payoff takes, celebrate interest saved. Create a chart showing "$2,000 interest avoided" or "saved $120 this month in interest vs minimum payments." Makes progress tangible.
Consider Debt Consolidation Loan Carefully
If you can get a personal loan below your weighted average APR (e.g., 10% vs 18% average), consolidation might be better than avalanche. But only if you don't rack up new card balances.
Common Mistakes to Avoid
✓ Better approach: Don't divide $200 extra into $66 each for 3 debts. This is inefficient. Put the full $200 toward your highest-rate debt while paying minimums on others. Focused intensity beats scattered effort.
✓ Better approach: Avalanche can feel slow if your highest-rate debt is large. Don't switch to snowball mid-strategy. Trust the math—you're saving maximum interest even if it takes longer to see the first debt disappear.
✓ Better approach: When you pay off the first debt, don't pocket that $300/month. Roll it entirely to the next debt. Lifestyle inflation is the enemy of debt freedom—maintain aggressive payments until all debts are gone.
✓ Better approach: If you qualify for a 0% balance transfer card, use it! Transfer your highest-rate balances, then apply avalanche to remaining debts. Just ensure you'll pay off the transfer before the promo ends.
✓ Better approach: Credit card APRs can change. If Card B's rate jumps above Card A, switch focus immediately. Re-sort by current APR quarterly to ensure you're always attacking the highest-cost debt.
✓ Better approach: Avalanche is mathematically optimal but psychologically harder. If you've failed at debt payoff before and need quick wins for motivation, snowball might serve you better despite costing more interest.
✓ Better approach: Keep $1,000-2,000 emergency fund before going all-in on debt payoff. Without a cushion, one unexpected expense forces you back into credit card debt, restarting the cycle.
Learn More
Credit Card Debt Elimination Guide
Complete strategies for paying off credit card debt faster, including avalanche, snowball, and balance transfer methods.
💰Complete Budgeting Guide
Master the 50/30/20 rule and zero-based budgeting to find extra money for aggressive debt payoff.
📈Credit Score Improvement Guide
Learn how paying off debt boosts your credit score and qualifies you for better rates on future borrowing.
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Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method involves paying off debts from highest to lowest interest rate. This mathematically saves you the most money on interest charges, even though progress may feel slower at first.
How much money does avalanche save vs snowball?
The avalanche method typically saves hundreds to thousands in interest compared to snowball. The exact amount depends on your debt balances and interest rates - higher rate differences mean bigger savings.
Why doesn't everyone use the avalanche method?
While avalanche saves more money, it can feel slower since you might be tackling larger debts first. Many people prefer snowball for the psychological wins of eliminating debts quickly.
Should I pay extra on all debts or just one?
Pay minimums on all debts to avoid penalties, then put all extra money toward the highest interest rate debt. Once that's paid off, roll that payment to the next highest rate debt.
What if rates are similar?
If your debts have similar interest rates (within 1-2%), the method you choose won't make much difference financially. In this case, choose the approach that motivates you most - snowball or avalanche.
How long will it take to become debt-free?
The timeline depends on your total debt, interest rates, and extra payment amount. With $16,000 debt at 18% average APR and $300 extra monthly, you could be debt-free in about 4 years instead of 10+ years making only minimum payments.
What if I can't afford extra payments?
Even $50-100 extra per month makes a significant difference. On $10,000 at 20% APR, adding $100/month saves $3,500 in interest and cuts payoff time from 12 years to 5 years. Find savings by cutting subscriptions, cooking at home, or selling unused items.
Should I stop saving to pay off debt faster?
Keep at least $1,000-2,000 emergency fund to avoid using credit cards for unexpected expenses. Beyond that, if your debt interest rates exceed 8-10%, aggressively paying debt often makes more sense than investing.
Can I combine avalanche with balance transfers?
Yes! Transfer high-interest balances to a 0% APR card, then use avalanche on remaining debts. Just pay off the transferred balance before the promotional period ends (typically 12-18 months) to avoid deferred interest.
What about mortgage and student loan debt?
Include only high-interest debts (typically 6%+ APR) in avalanche. Low-interest mortgages (3-5%) and federal student loans (4-6%) are often better paid on schedule while investing extra money for higher returns.
How do I stay motivated with avalanche?
Track interest saved rather than debts eliminated. Celebrate milestones like "saved $1,000 in interest" or "paid off highest rate debt." Consider hybrid approaches: use avalanche but celebrate when each debt is eliminated.
What happens when I pay off the first debt?
Roll the entire payment (minimum + extra) from the first debt to the next highest-rate debt. This "avalanche effect" accelerates payoff. For example, if you were paying $400/month on Debt #1, add that full $400 to Debt #2's minimum payment.