Debt Avalanche Calculator
Attack the highest-interest debt first and save the maximum amount of money on your way to debt freedom.
Your Debts
| Name | Balance ($) | Rate (%) | Min. Payment ($) | |
|---|---|---|---|---|
Extra cash you can apply on top of minimum payments each month.
How the Avalanche Method Works
The avalanche method sorts your debts by interest rate — highest first. You pay minimums on everything and pour any extra money at the highest-rate debt until it's gone, then move on to the next.
Mathematically, this is the most efficient strategy. You're eliminating the source of the most expensive interest as quickly as possible. Over time, this typically means paying less total interest and getting debt-free faster than with the snowball.
Is it better than snowball?
On paper, almost always. In practice, it depends on your personality. If you need quick wins to stay motivated, the snowball may serve you better. Finishing more slowly with the right method beats giving up partway through the optimal one.
What to Watch Out For
- Patience required:If your highest-rate debt is also a large balance, it can feel like nothing's happening for months. That's normal — stay the course.
- Variable rates: If any of your debts have variable rates (common on credit cards), rerun the calculator periodically.
- Estimates only:This tool doesn't account for fees, missed payments, or balance transfers. Your actual payoff will vary.
Frequently Asked Questions
What is the debt avalanche method?
The debt avalanche method pays off debts in order of highest interest rate first, while making minimum payments on all others. Once the highest-rate debt is paid off, you roll that payment into the next highest-rate debt.
Does the avalanche method always save the most money?
Yes — mathematically, paying off your highest-interest debt first minimises the total interest you pay. The savings compared to the snowball method can range from a few hundred to several thousand dollars depending on your debt amounts and rates.
Why does the avalanche feel slow at first?
If your highest-rate debt is also a large balance, it can take months before you see a debt fully paid off. This is normal. The progress is happening — you're just seeing it in lower interest charges rather than a closed account.
Can I switch from snowball to avalanche mid-plan?
Yes. Many people start with snowball to build momentum, then switch to avalanche once they've paid off a debt or two. Just rerun the calculator with your remaining balances to get an updated plan.
What counts as my 'minimum payment'?
Your minimum payment is the smallest amount your lender requires each month to keep the account current. You can find it on your statement. For this calculator, enter that exact amount — the tool handles the math of rolling extra payments to your target debt.