🏔️ Debt Avalanche Calculator
Pay off your debts from highest to lowest interest rate and save the maximum amount on interest charges.
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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.