Debt Avalanche Calculator
Pay off debts from highest to lowest interest rate to save the most money on interest
What is the Debt Avalanche Method?
The debt avalanche method is a mathematically optimal debt repayment strategy where you focus on paying off debts with the highest interest rates first while making minimum payments on all others. Once the highest-rate debt is paid off, you move to the next highest rate, and so on.
This method saves you the most money in interest charges over time, though it may take longer to see your first debt eliminated compared to the debt snowball method.
Enter Your Debts
Amount you can pay above all minimum payments each month
How the Debt Avalanche Works
List All Your Debts
Write down all your debts with their balances, interest rates, and minimum payments.
Order by Interest Rate
Rank your debts from highest to lowest interest rate, regardless of balance.
Make Minimum Payments
Pay the minimum required payment on all debts to avoid penalties and fees.
Attack the Highest Rate
Put all extra money toward the debt with the highest interest rate.
Roll to Next Debt
Once the highest-rate debt is paid off, move to the next highest rate and repeat.
Advantages
- ✓Saves the most money on interest charges
- ✓Mathematically optimal repayment strategy
- ✓Fastest path to debt freedom
- ✓Reduces total interest paid over time
- ✓Great for logical, numbers-focused individuals
Considerations
- !May take longer to see first debt eliminated
- !Requires strong self-discipline and patience
- !Less immediate psychological gratification
- !Can feel discouraging if highest-rate debt is largest
- !Not ideal if motivation is your biggest challenge
Avalanche vs. Snowball: Which is Right for You?
| Factor | Debt Avalanche | Debt Snowball |
|---|---|---|
| Priority | Highest interest rate first | Smallest balance first |
| Interest Savings | Maximum savings | Moderate savings |
| Motivation | Long-term focused | Quick wins |
| Best For | Logical, patient savers | Need motivation boost |
| Time to First Payoff | Potentially longer | Usually faster |
| Total Time to Debt-Free | Faster overall | Slightly longer |
Expert Tip: The best method is the one you'll actually stick with. The avalanche saves more money, but if you need psychological wins to stay motivated, the snowball method may be better for you.
Ready to Tackle Your Debt?
Use our other calculators to explore different debt payoff strategies