How the Debt Avalanche Calculator works
Estimate a highest-interest-first debt payoff plan. Adjust the inputs above, then use the calculate button to generate a fresh estimate based on the numbers you entered.
The result is designed to give you a quick planning number, plus a short breakdown of the major figures behind it. You can reset the form at any time and try a different scenario.
When to use this calculator
Use this debt avalanche calculator when your main goal is reducing interest cost. It targets the highest APR debt first while maintaining minimum payments on the others.
Formula
Avalanche order = debts sorted from highest APR to lowest APR
- Each debt includes a balance, APR and minimum payment.
- Extra payment goes to the debt with the highest interest rate.
- When the target debt is paid off, its payment rolls to the next highest-rate debt.
Worked example
With debts at 8.99%, 19.99% and 14.99% APR plus $200 extra per month, the calculator prioritizes the 19.99% debt first.
Common mistakes
- Ignoring motivation if the highest-rate balance is also very large.
- Missing minimum payments on lower-rate debts while attacking the target.
- Using the wrong APR for promotional or variable-rate debt.
FAQs
Why does avalanche often save more interest?
It pays down the highest-cost debt first, reducing the balance that accrues the most interest.
Is avalanche always best?
Mathematically it is often strong, but the best plan is one you can consistently follow.
Can I compare avalanche with snowball?
Yes. Run the same debts through both calculators to compare payoff time, interest and motivation.